President Nana Addo Dankwa Akufo-Addo, delivering his final State of the Nation Address (SONA), has projected a 6.3% growth in Ghana’s economy for 2025. He also addressed the country’s economic indicators, including the Debt-to-GDP ratio, as part of his economic outlook.
He also announced that the country’s debt-to-GDP ratio is expected to decline to 74%, signaling a shift toward fiscal stability after years of economic turbulence.
The President emphasized that Ghana has made significant strides in recovering from past crises. He credited the progress to reforms and policies implemented during his tenure. Key sectors such as agriculture, mining, and industry are expected to drive the projected growth. These gains, including the positive Debt-to-GDP outlook, are supported by recent investments in infrastructure and efforts to diversify the economy.
This announcement follows the Finance Minister’s presentation of the 2025 Expenditure in Advance of Appropriation to Parliament on January 2, 2025. The mini-budget, which seeks approval for GHC 68.1 billion, is designed to cover essential expenses, including salaries and statutory payments. After delays caused by political stalemates, the presentation has provided some relief to stakeholders eager for economic stability.
The projected debt-to-GDP ratio of 74% underscores ongoing efforts to manage public debt and improve revenue mobilization. This marks a notable improvement from previous years when Ghana struggled with soaring debt levels due to economic shocks and pandemic-related borrowing. Fiscal reforms, enhanced tax collection systems, and strategic expenditure cuts have contributed to this progress, reflecting a more disciplined approach to economic management under the current administration.
While the President offered a positive outlook for the economy, he acknowledged the pressing challenges of inflation, unemployment, and rising living costs. Addressing these issues will require sustained policy efforts, including measures to stabilize food prices, generate sustainable employment opportunities, and lower the overall cost of living. Only by tackling these challenges can the full benefits of the projected economic recovery and a healthy Debt-to-GDP ratio be realized.
