By Francis Kobena Tandoh
Ghana’s fiscal position has improved significantly since John Dramani Mahama took over the administration of the country on January 7, 2025, according to Finance Minister Dr. Cassiel Ato Forson, who announced on Thursday.
Presenting the 2025 Mid-Year Budget to Parliament, he observed that the people are feeling the signs of the recovery.
“We have made significant progress. The signs of recovery are obvious, evident, noticeable, visible, tangible, and being felt. Mr. Speaker, Ghana’s fiscal position has significantly improved,” said Ato Forson.
He gave highlights of the economy, saying the primary balance on a commitment basis posted a surplus of 1.1% of GDP at the end of June 2025, beating the ambitious 0.4% surplus target.
The overall fiscal deficit on a commitment basis was 0.7% of gross domestic product (GDP), outperforming the target of 1.8% at the end of June 2025.
The country’s inflation, he emphasized, has reduced significantly from 23.8% at the end of December 2024 to 13.7% at the end of June 2025. This, he noted, is the lowest since December 2021 and marks six months of continuous decline, with interest rates also declining with a drastic drop in treasury bill rates.
The finance minister further emphasized that Ghana’s gross international reserves have significantly improved, as the Bank of Ghana accumulated US$11.12 billion, covering 4.8 months of imports as of the end of June 2025, compared to US$8.98 billion, covering 4 months of imports as of the end of December 2024.
He also touted the gains the country’s currency has made in recent times. “Mr. Speaker, the Ghana cedi has demonstrated exceptional resilience and strength in recent months.
According to him, as of the end of June 2025, the cedi appreciated by 42.6% against the US dollar, 30.3% against the British pound, and 25.6% against the euro.
“This is a significant reversal compared to the same period in 2024, when the cedi depreciated by 18.6%, 17.9%, and 16.0%, respectively. Mr. Speaker, so far, we have almost reversed all the cedi depreciation in 2022, 2023, and 2024,” added Dr. Ato Forson.
The performance of the local currency, the minister observed, is the first time that this level of appreciation has been recorded in the 60-year history of the Ghana cedi.
He also emphasized that rating agencies, which once classified Ghana’s sovereign creditworthiness as junk, are beginning to upgrade the country’s ratings.
Fitch Ratings has upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-‘ with a stable outlook from ‘Restricted Default’ (RD) on 17th June 2025.
On Ghana’s program with the International Monetary Fund (IMF), Dr. Ato Forson said it was back on track with the successful conclusion of the fourth review by the IMF Executive Board on the 7th of July 2025, which immediately triggered a disbursement of US$367 million.
The finance minister attributed the success story so far to “sound leadership, better economic management, and a restoration of hope to a nation once in despair.” Enditem
Source: Ghana Eye Report
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