Finance Minister, Cassiel Ato Forson, has stated that Ghana’s economic trajectory reflects significant resilience underpinned by disciplined policy interventions and strategic investments.
Addressing Parliament on Thursday during the presentation of the Mid-Year Budget Review, he outlined an optimistic assessment of the country’s economic performance in the first half of the year while reaffirming government’s commitment to prudent fiscal management and macroeconomic stability.
“Mr. Speaker, the first half of 2025 has demonstrated our government’s commitment to economic recovery. Through prudent fiscal management, sound monetary policy, effective structural reforms and strategic investments, we are laying a solid foundation for sustainable growth and shared prosperity,” he said.
Key Macroeconomic Targets on Track
The Minister reiterated that at the start of the year, the government set “ambitious, yet attainable” macroeconomic targets to consolidate economic gains and spur inclusive growth. These included; overall Real GDP growth of at least 4.0%, Non-Oil Real GDP growth of at least 4.8%, end-year inflation rate of 11.9%, and primary balance on commitment basis at a surplus of 1.5% of GDP.
Backing these targets, recent data from the Ghana Statistical Service showed that the economy expanded by 5.3% in Q1 2025, with non-oil GDP growth reaching 6.8%, driven largely by robust performances in agriculture, services, and industry.
On the inflation front, the Bank of Ghana’s June 2025 data recorded a decline in headline inflation to 13.7%, marking six consecutive months of deceleration from 23.8% at the end of last year. This moderation has been attributed to stable exchange rates, tighter monetary policy, and improved food supply conditions.
The country’s external sector also posted strong outturns. Provisional data from the Bank of Ghana indicates a trade surplus of US$5.6 billion in the first half of 2025, more than doubling the US$1.4 billion recorded a year earlier. The current account balance similarly improved to a surplus of US$3.4 billion, compared to just US$283 million in H1 2024, on account of strong export receipts from gold, cocoa, and oil.
These favourable developments boosted Ghana’s gross international reserves to US$11.1 billion as at the end of June 2025, representing 4.8 months of import cover, exceeding the mid-year target of not less than three months.
Fiscal Consolidation Efforts Bearing Fruit
On fiscal performance, the Minister emphasised that government’s consolidation measures were yielding results, with the fiscal deficit narrowing and the primary balance remaining on course for a surplus.
Recent Bank of Ghana Monetary Policy Committee reports revealed a narrowing deficit on a commitment basis, while revenue mobilisation efforts improved with year-to-date domestic revenue exceeding targets by over GH¢3 billion, driven by higher income taxes and strong non-tax revenue performance, particularly in extractives and levies.
“Mr. Speaker, these outcomes demonstrate that our economic programme is working. We will continue to build on this momentum to achieve macroeconomic stability, restore investor confidence, and create an environment conducive to business growth,” Dr. Forson assured.
Despite the positive trends, the Minister cautioned that downside risks persist. Global geopolitical tensions, volatility in commodity prices, and climate-related shocks continue to pose threats to economic recovery.
The 2025 Mid-Year Budget Review also highlighted ongoing reforms under Ghana’s IMF-supported Post-COVID Programme for Economic Growth (PC-PEG), with upcoming measures expected to anchor debt sustainability, streamline tax administration, and expand social protection interventions.
