Resetting Ghana’s Economy: The 20 Reforms and Achievements That Defined 2025
The year 2025 will go down in Ghana’s economic history as the year the reset truly began.
After inheriting an economy weighed down by inflation above 23 percent, interest rates north of 30 percent, a sharply depreciating cedi, battered investor confidence, and unsustainable debt dynamics, the Mahama Administration moved with speed and clarity to stabilise the fundamentals and rebuild trust. At the centre of this recovery drive was the Minister for Finance, Dr. Cassiel Ato Forson, backed by a President who provided stellar leadership and unwavering political support.
What follows are the 20 key macroeconomic achievements and reforms implemented in 2025 that together reset Ghana’s economy.
Growth Reignited
- GDP expanded by 6.1 percent in the first three quarters of 2025, up from 5.7 percent over the same period in 2024 — the fastest growth since 2019.
- Non-oil GDP growth surged to 7.5 percent, reflecting broad-based expansion in the real economy where most jobs are created.
These figures signalled a decisive end to the stagnation of previous years.
Inflation Brought Under Control
- Headline inflation collapsed from 23.8 percent in December 2024 to 6.3 percent by November 2025, the lowest since February 2019.
- Food inflation fell by 21.2 percentage points to 6.6 percent.
- Non-food inflation eased by 14.2 points to 6.1 percent.
- Inflation on locally produced items declined to 6.8 percent from 26.4 percent.
- Imported inflation dropped to 5.0 percent from 18.0 percent.
For households, this meant restored purchasing power and relief at the market stalls.
Interest Rates Collapse
- Treasury bill rates plunged from over 30 percent at end-2024 to about 11 percent in 2025, cutting government borrowing costs and unlocking credit to the private sector.
Cedi Makes History
For the first time in many years, the cedi recorded an annual appreciation against all major currencies:
• 40.7 percent against the US dollar
• 30.9 percent against the pound sterling
• 24.0 percent against the euro
This reversed the painful depreciation of 2024.
External Position Strengthened
- Trade balance posted a surplus of US$8.5 billion by end-October 2025, up from US$2.8 billion a year earlier.
- Current account surplus widened to US$3.8 billion in the first three quarters, from US$0.6 billion in 2024.
- Gross international reserves rose to US$11.41 billion, covering 4.8 months of imports.
Debt Turnaround
- Public debt fell from GH¢726.7 billion (61.8% of GDP) in December 2024 to GH¢630.2 billion (45.0% of GDP) by October 2025, one of the sharpest debt reductions in Ghana’s history.
Investor Confidence Restored
- Fitch, Moody’s and S&P all upgraded Ghana’s credit ratings — the first triple upgrade in years and a powerful endorsement of fiscal credibility.
Fiscal Discipline Returns
- A primary surplus of 1.9 percent of GDP was achieved by October 2025, tripling the initial target of 0.6 percent.
Pro-Growth Reforms
- Major VAT reliefs including the abolition of the COVID-19 Levy, reduction of VAT to 20 percent, restoration of VAT input deductions, raising the VAT threshold to GH¢750,000, and zero-rating textiles to 2028.
- Strengthened fiscal rules, amending the PFMA to cap debt at 45 percent of GDP by 2034 and require a minimum 1.5 percent primary surplus annually.
- Abolished nuisance taxes such as the Betting Tax, Emission Tax and e-Levy to ease the cost of doing business.
- Redirected oil revenues, mining royalties and DACF transfers to priority infrastructure under The Big Push and empowered local governments with at least 80 percent direct transfers.
Financial Sector Reset
A sweeping reset of the financial system saw:
• Recapitalisation of National Investment Bank with GH¢1.92 billion.
• Total funds under management rising to GH¢85.53 billion.
• GSE Composite Index delivering 27.82 percent return with volumes up 146 percent.
• Fixed income trading jumping to GH¢108.23 billion, a 51 percent year-on-year increase.
