Ghana’s economy is showing clear signs of recovery and renewed investor confidence, with the government projecting strong growth and fiscal stability in 2026 following what Finance Minister Dr. Cassiel Ato Forson described as a “painful but necessary turnaround.”
Presenting the 2026 Budget Statement to Parliament, the Minister said Ghana’s economy has “regained its rhythm,” with real GDP expanding by 6.3% in the first half of 2025, up from 5.1% in the same period of 2024. The growth, he said, was driven by agriculture and services, lower inflation, and rising business confidence.
“Ghana’s economy has now recovered, marked by renewed investor confidence and an improved macroeconomic outlook,” Dr. Forson said. “This is the growth that creates jobs, lifts incomes, and builds lasting stability.”
Growth Driven by Non-Oil Sectors
Non-oil GDP surged by 7.8%, showing that growth was increasingly powered by domestic production. The services sector grew 8.8%, led by ICT (17.2%), finance and insurance (9.5%), and education (14.9%). Agriculture expanded by 6%, doubling last year’s rate, while cocoa output rebounded to 2.8% growth after a 21.4% contraction.
Industry remained stable, with manufacturing rising 6.3% and construction up 4%, supported by improved energy supply and renewed infrastructure investment.
Inflation Falls to Single Digits
Ghana achieved one of its strongest disinflation periods in years, with headline inflation dropping from 23.8% in December 2024 to 8% by October 2025.
“This was not by sheer luck,” the Minister said. “It is the outcome of disciplined fiscal policy, steady monetary management, stable exchange rates and strong domestic production.”
Food inflation fell from 27.8% to 9.5%, while non-food inflation declined to 6.9%, providing relief to households.
Fiscal Turnaround and Debt Reduction
Dr. Forson said fiscal consolidation had delivered tangible results, turning a 3% deficit in 2024 into a 1.6% primary surplus by September 2025.
“The removal of nuisance taxes like the e-levy did not weaken revenue,” he noted. “Broader tax reforms and efficiency gains lifted non-oil tax revenue to 8.7% of GDP, up from 7.8% in 2024.”
Public debt fell sharply to 45% of GDP, down from 61.8% in 2024, the lowest in a decade, while Ghana’s debt risk rating improved from “high” to “moderate.” Treasury bill rates also dropped, saving the government an estimated 8.8% in interest costs.
Tackling Fiscal Abuse and Corruption
The Minister disclosed that a special audit of government arrears uncovered GH₵10.4 billion in invalid claims, including inflated invoices and duplicated certificates.
“Without this audit, these claims would have been paid, underscoring the importance of vigilance and verification,” he told Parliament.
On trade-related fraud, Dr. Forson revealed that between 2020 and 2025, over US$83 billion in import-related transfers were recorded, but only a fraction were linked to real imports.
“This was not a loophole, it was organized crime,” he said. “Every dollar leaving Ghana must deliver real value for the people of Ghana.”
He said the matter had been referred to the Attorney General, EOCO, FIC, and CID for investigation, and a special recovery unit would be set up by the Ghana Revenue Authority to reclaim lost funds.
Energy Reforms Yield Gains
The energy sector, once described as a “fiscal bomb,” has seen major progress after the government renegotiated power purchase agreements worth US$1.4 billion in debt to Independent Power Producers.
“We have renegotiated all power purchase agreements, saving over US$250 million and restructuring GH₵1.1 billion over four years,” he said.
The Electricity Company of Ghana’s revenues have improved by nearly 90%, from GH₵900 million to GH₵1.7 billion monthly, following enforcement of the cash waterfall mechanism.
2026 Outlook: Stability into Shared Prosperity
Looking ahead, Dr. Forson outlined a fiscal strategy aimed at converting Ghana’s hard-won stability into inclusive growth.
“Our mission is clear, to turn the hard-won stability of 2025 into shared prosperity,” he said. “Inflation is down, the cedi is stronger, and growth has regained momentum.”
Key fiscal priorities for 2026 include:
- Maintaining a primary surplus of 1.5% of GDP.
- Sustaining inflation within the 8% ±2% target band.
- Achieving real GDP growth of at least 4.8% and non-oil GDP growth of 4.9%.
- Maintaining reserves equivalent to at least three months of imports.
- Protecting social spending in education, health, and social protection.
Dr. Forson said Ghana’s public debt trajectory is now firmly downward, and that all three major rating agencies, Fitch, Moody’s, and S&P, have upgraded the country’s ratings.
“Ghana is once again credible, stable, and open for business,” he declared.
A New Chapter for Fiscal Responsibility
The 2026 budget, he said, signals a new era of fiscal credibility, anchored on discipline, transparency, and growth.
“Ghana’s fiscal consolidation is now credible, sustainable, and homegrown, a model of responsibility that turns stability into progress.
