Ghana’s economy has achieved substantial macroeconomic stabilisation, with inflation falling sharply from 23.8 percent to 3.2 percent and the cedi appreciating by approximately 40.7 percent against the US dollar in 2025. This significant turnaround includes Gross Domestic Product (GDP) growing 5.95 percent overall, with non-oil growth reaching 7.57 percent in 2025.
These positive shifts follow a period of considerable economic stress under the previous administration, marked by elevated inflation, a weakened cedi, and fiscal pressures from domestic debt restructuring. The current improvements are visible in key indicators, including international reserves reaching a record $14.5 billion as of February 2026. This recovery, spanning 16 months since January 2025, represents a meaningful reset for the economy and impacts all citizens through greater price stability and a stronger currency.
This macroeconomic recovery fits into Ghana’s broader efforts to restore fiscal stability and economic growth after a period of crisis. The Composite Index of Economic Activity (CIEA), which tracks activity across various sectors, saw its real growth more than double from 2.4 percent in 2024 to 6.1 percent in 2025. This statistically significant improvement (p<0.001) confirms a genuine broadening of economic activity beyond just the extractive industries. Such trends are crucial for sustainable long-term development and job creation across the country.
Economists Dr. Stephen Lartey and Dr. Theophilus Acheampong conducted the data-driven assessment, noting the clear statistical evidence for macroeconomic improvement. They highlighted that comparing 2024 with 2025, every major macroeconomic indicator moved positively. Inflation dropped by over eight percentage points, the cedi appreciated by approximately 14 percent annually against the US dollar, and gross international reserves rose by approximately $4 billion.
Despite these macro successes, the private sector's response remains measured, raising questions about the pace of real-sector activity acceleration. The Purchasing Managers’ Index (PMI), a key indicator of business conditions for about 400 Ghanaian firms, averaged 50.33 in 2025, barely up from 50.13 in 2024. This marginal change of 0.20 index points is not statistically significant (p=0.530), suggesting that macroeconomic gains have yet to translate into a noticeable acceleration for private businesses.
A PMI reading above 50 indicates expansion, while below 50 means contraction. Although the private sector has remained in expansion territory overall, the lack of significant acceleration suggests businesses are not yet experiencing the full benefits of the broader economic recovery. Policymakers will likely focus on initiatives to bridge this gap, ensuring that macroeconomic stability filters down to private firms and workers. Observers will be watching for signs of increased private sector credit growth, which declined significantly from 32.8 percent in 2024 to 22.9 percent in 2025, to confirm a more widespread recovery.