Ghana's economy shows a strong recovery. Finance Minister Dr. Cassiel Ato Forson presented this to Parliament. The recovery is a result of disciplined reforms. These reforms followed a period of economic crisis.
Dr. Forson described the previous administration's economy as deeply mismanaged. He cited fiscal indiscipline and policy failures. These issues left the economy severely weakened by the end of 2024. The state was described as bloated and inefficient. Waste and corruption worsened economic vulnerabilities. The previous government undermined its own IMF deal. They missed targets and broke commitments. This showed the depth of the inherited crisis. The challenges were structural, not just cyclical.
The current government did not seek to assign blame. Instead, they highlighted the importance of fiscal discipline. They emphasized the consequences of economic mismanagement. These experiences should serve as a lesson. Ghana must avoid such a path again. Painful experiences must be lived to be understood. The minister stated, "never again." He spoke emphatically in Parliament.
Upon taking office, President Mahama's government acted quickly. They aimed to stabilize the economy. Confidence in the IMF program was restored. The IMF framework was recalibrated. This ensured fairer burden-sharing. Deeper structural reforms were introduced. Stricter public financial management controls were implemented. Audits of government arrears were conducted. Measures targeted inefficiencies in public spending.
New governance and oversight institutions were established. The Office of Value for Money is one. The Independent Fiscal Council is another. These strengthen accountability. They ensure compliance with fiscal rules. A Sinking Fund was operationalized for debt management. The Ghana Gold Board (GOLDBOD) was introduced. This aimed to support foreign exchange stability. Amendments to the Public Financial Management Act were made. These institutionalize long-term debt and deficit targets.
The size of the executive branch was reduced. The number of ministers dropped from 123 to 60. Ministries were cut from 30 to 23. Certain taxes were removed. These were described as "nuisance taxes." They included the E-Levy and Betting Tax. The Emissions Levy and VAT on motor insurance were also removed. This eased pressure on households and businesses.
These policy interventions showed clear results. Real Gross Domestic Product (GDP) growth reached 6.0 per cent in 2025. This was the strongest post-pandemic expansion. Non-oil GDP growth rose to 7.6 per cent. This is the highest in 14 years. Ghana's economy crossed the US$100 billion threshold. It is now among Africa's largest economies. It ranks eighth on the continent. Per capita income increased to US$3,385.
On fiscal performance, a primary surplus of 2.5 per cent of GDP was reported for 2025. The public debt-to-GDP ratio fell sharply. It dropped from 61.8 per cent in 2024 to 44.7 per cent by the end of 2025. This met the IMF target early. Debt servicing pressures eased significantly. The debt-to-domestic revenue ratio fell from 55.7 per cent in 2022 to 28.8 per cent in 2025. This occurred despite full Eurobond payments resuming.
Ghana's debt risk rating improved. It went from "high risk" to "moderate risk" in the Debt Sustainability Analysis. Inflation declined substantially. It dropped from 23.8 per cent in December 2024 to 3.4 per cent in April 2026. Interest rates also fell sharply. The 91-day Treasury bill rate dropped by over 2,300 basis points to 4.8 per cent. Government bond yields and the policy rate also declined significantly.
Externally, the current account balance showed a surplus. It was 8.3 per cent of GDP in 2025. The Ghana cedi appreciated by 40.7 per cent against the US dollar. These results demonstrate fiscal discipline. They show prudent economic management. Fiscal prudence and discipline deliver results. Macroeconomic stability is the foundation. It supports sustainable growth, investor confidence, and job creation.