Gov’t reports strong 2025 fiscal turnaround as debt falls by GH¢82.1bn and inflation drops to 3.8%

Government has announced what it describes as one of the most significant economic turnarounds in Ghana’s history, citing strong fiscal consolidation, sharp declines in inflation and interest rates, currency appreciation, and a substantial reduction in public debt in 2025.

According to an official statement issued in Accra on Monday, the 2025 fiscal year marked a decisive reversal of the economic pressures that characterised the end of 2024. At that time, the primary balance on a commitment basis stood at a deficit of 3.0 percent of GDP, the 91-day Treasury bill rate had climbed to 27.7 percent, the Ghana cedi had depreciated by 19.2 percent against the US dollar, and inflation was at 23.8 percent.

Government said a combination of fiscal discipline, strict commitment controls, structural reforms, and prudent monetary policy restored macroeconomic stability and placed public finances back on a sustainable path.

Fiscal performance exceeds targets

The 2025 fiscal outturn significantly outperformed targets. The overall fiscal balance on a commitment basis recorded a deficit of 1.0 percent of GDP, better than the 2.8 percent target. The primary balance on a commitment basis improved to a surplus of 2.6 percent of GDP, exceeding the programmed surplus of 1.5 percent.

On a cash basis, the overall fiscal deficit narrowed to 3.1 percent of GDP, outperforming the 3.8 percent target. The primary balance on a cash basis recorded a surplus of 0.5 percent of GDP, compared to a projected deficit of 0.5 percent.

Government attributed the improved fiscal position to strengthened revenue mobilisation and tighter expenditure controls.

Public debt declines sharply

One of the most notable developments was the reduction in public debt. Ghana’s total public debt stock declined by GH¢82.1 billion, from GH¢726.7 billion, equivalent to 61.8 percent of GDP in December 2024, to GH¢641.0 billion, representing 45.3 percent of GDP in December 2025.

Officials described the reduction as one of the sharpest debt declines recorded in the country’s history.

Growth rebounds, inflation falls

Provisional data show that real GDP grew by 6.1 percent year-on-year in the first three quarters of 2025, driven largely by the services and agriculture sectors. Non-oil GDP growth was even stronger at 7.5 percent over the same period, compared to 5.8 percent in 2024.

Inflation has declined for thirteen consecutive months, falling by 19.7 percentage points from 23.5 percent in January 2025 to 3.8 percent in January 2026. Over the broader 2024 to 2025 period, inflation dropped from 23.8 percent to 5.4 percent by the end of 2025 and has continued trending downward.

Interest rates have also eased significantly. The 91-day Treasury bill rate fell from 27.7 percent at the end of 2024 to 11 percent by December 2025 and further to 6.5 percent in February 2026. The average commercial bank lending rate declined from 30.25 percent in 2024 to 20.45 percent in 2025.

Government said the lower rates have reduced borrowing costs and improved credit conditions for the private sector. Credit to the private sector expanded by GH¢17.1 billion in 2025, with further growth projected in 2026.

Cedi appreciates, external position strengthens

The Ghana cedi appreciated by 40.7 percent against the US dollar by end-December 2025, reversing the 19.2 percent depreciation recorded in 2024. The currency also gained 30.9 percent against the pound sterling and 24.0 percent against the euro.

The country’s external position strengthened considerably, with the current account recording a surplus of US$9.1 billion at the end of December 2025, compared to US$1.5 billion in 2024. Gross international reserves reached US$13.8 billion, sufficient to cover 5.7 months of imports.

Commitment to sustained gains

Government described the turnaround as broad-based and comprehensive, stating that all sectors of the economy have shown measurable improvement.

The administration of President John Dramani Mahama, the statement said, remains committed to consolidating the gains achieved, with a focus on job creation, sustained growth, and long-term economic transformation.

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