Ghana Economy Surges Past 100 Billion Dollars as Ato Forson Declares Strong Recovery

Finance Minister Dr. Cassiel Ato Forson has told Parliament that Ghana’s economy has crossed the US$100 billion threshold for the first time, crediting disciplined reforms under President John Dramani Mahama’s administration for what he called a decisive turnaround from an inherited crisis.

Speaking on the floor of the House on Thursday, Dr. Forson said the government had to confront the consequences of fiscal indiscipline, structural weaknesses, and policy failures that had left the economy severely weakened by the end of 2024. He argued that the previous administration presided over a period in which the state became “bloated, purposefully inefficient, and riddled with waste and corruption.”

He further told Parliament that by December 2024, the then administration had “undermined” the International Monetary Fund programme it had itself negotiated, citing missed targets and unfulfilled commitments.

A Swift Stabilisation

According to the Finance Minister, upon assuming office, President Mahama’s government moved swiftly to stabilise the economy and restore confidence in the IMF-supported programme. The administration undertook a recalibration of the IMF framework to ensure what he described as fairer burden-sharing and deeper structural reforms.

A series of fiscal and institutional reforms were introduced, including stricter public financial management controls, audits of government arrears, and measures to eliminate inefficiencies in public expenditure. The government also established new governance and oversight institutions, including the Office of Value for Money and an Independent Fiscal Council, aimed at strengthening accountability.

Other measures included the operationalisation of a Sinking Fund for debt management, the introduction of the Ghana Gold Board (GOLDBOD) to support foreign exchange stability, and amendments to the Public Financial Management Act to institutionalise long-term debt and deficit targets.

Leaner Government, Lighter Tax Burden

The government reduced the size of the executive branch, cutting the number of ministers from 123 down to 60 and reducing ministries from 30 to 23. What the Minister described as “nuisance taxes”, including the E-Levy, Betting Tax, Emissions Levy, and VAT on motor insurance, were removed to ease pressure on households and businesses.

Dr. Forson told Parliament that these interventions had produced “clear and measurable results” across key macroeconomic indicators. Real GDP growth reached 6.0 per cent in 2025, marking the strongest post-pandemic expansion, while non-oil GDP growth rose to 7.6 per cent, the highest in 14 years.

Per capita income increased to US$3,385, placing Ghana among Africa’s largest economies and ranking it eighth on the continent.

Fiscal and External Gains

On fiscal performance, the Minister reported a primary surplus of 2.5 per cent of GDP in 2025, alongside a sharp reduction in the public debt-to-GDP ratio from 61.8 per cent in 2024 to 44.7 per cent by the end of 2025, achieving the IMF target ahead of schedule.

Debt servicing pressures also eased significantly, with the debt-to-domestic revenue ratio falling from 55.7 per cent in 2022 to 28.8 per cent in 2025. Ghana’s debt risk rating improved from “high risk” to “moderate risk” under the Debt Sustainability Analysis.

Inflation declined from 23.8 per cent in December 2024 to 3.4 per cent in April 2026. The 91-day Treasury bill rate dropped by more than 2,300 basis points to 4.8 per cent. Government bond yields and the policy rate also recorded significant declines.

Externally, the current account balance recorded a surplus of 8.3 per cent of GDP in 2025, while the cedi appreciated by 40.7 per cent against the US dollar.

“Fiscal prudence and discipline always deliver results,” Dr. Forson told Parliament, arguing that macroeconomic stability remains the foundation for sustainable growth, investor confidence, and job creation.

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