Government has announced a major improvement in Ghana’s economic performance, revealing a GH¢82.1 billion reduction in public debt alongside a sharp fall in inflation to 3.8 percent.
According to an official statement issued in Accra on Monday, February 23, the 2025 fiscal year marked a decisive turnaround from the economic pressures that characterised the end of 2024.
At the close of 2024, the economy was under significant strain. The primary balance on commitment basis had recorded a deficit of 3.0 percent of GDP. The 91-day Treasury bill rate stood at a high 27.7 percent, the Ghana cedi had depreciated by 19.2 percent against the US dollar, and inflation had climbed to 23.8 percent.
However, government says a combination of fiscal discipline, strengthened commitment controls, structural reforms and prudent monetary policy helped restore macroeconomic stability in 2025.
Fiscal performance exceeded expectations. The overall fiscal balance on commitment basis recorded a deficit of 1.0 percent of GDP, outperforming the target of 2.8 percent. The primary balance on commitment basis improved significantly to a surplus of 2.6 percent of GDP, surpassing the 1.5 percent target.
On a cash basis, the overall fiscal deficit narrowed to 3.1 percent of GDP, better than the projected 3.8 percent. The primary balance on cash basis also recorded a surplus of 0.5 percent of GDP.
The improved fiscal position, supported by debt management measures, led to a significant decline in the country’s public debt stock. Public debt reduced from GH¢726.7 billion, representing 61.8 percent of GDP in December 2024, to GH¢641.0 billion, or 45.3 percent of GDP, in December 2025. This marks a reduction of GH¢82.1 billion within one year.
Macroeconomic indicators also showed strong recovery.
Real GDP growth reached a provisional 6.1 percent year-on-year in the first three quarters of 2025, largely driven by services and agriculture. Non-oil growth performed even better at 7.5 percent, compared to 5.8 percent during the same period in 2024.
Inflation declined for thirteen consecutive months, dropping by 19.7 percentage points from 23.5 percent at the end of January 2025 to 3.8 percent at the end of January 2026.
Interest rates also fell sharply. The 91-day Treasury bill rate declined from 27.7 percent at the end of 2024 to 11 percent in December 2025 and further to 6.5 percent in February 2026. The average commercial bank lending rate reduced from 30.25 percent in 2024 to 20.45 percent in 2025.
Credit to the private sector expanded by GH¢17.1 billion in 2025, while the cedi appreciated by 40.7 percent against the US dollar by the end of December 2025. It also strengthened against the pound sterling and the euro.
Ghana’s external position improved significantly, with the current account recording a surplus of US$9.1 billion by end-December 2025, up from US$1.5 billion in 2024. Gross international reserves rose to US$13.8 billion, providing 5.7 months of import cover.
Government maintains that the broad-based macroeconomic recovery reflects strong policy coordination and remains committed to sustaining the gains to create jobs and place the economy on a path of durable growth.
