“Ghana’s Economy Stabilizing” – Ato Forson Reports Inflation Drop, Cedi Gains and Growth Momentum in Mid-Year Review

By: Nana Kwasi Roka

Finance Minister Dr. Cassiel Ato Forson has presented a cautiously optimistic picture of Ghana’s economy, pointing to declining inflation, a stabilizing cedi, and a gradual return to growth during the first half of 2025.

Delivering the 2025 Mid-Year Budget Review Statement in Parliament on Thursday, July 24, Dr. Forson told the House that economic reforms under the government’s recovery programme and IMF-supported strategies were beginning to yield visible results.

“We are witnessing a turning point,” he said. “Inflation is falling, the cedi is gaining ground and growth is picking up. Stability is returning.”

Inflation Falls Below 20%

According to the Minister, headline inflation, which stood at 54.1% in December 2022, has now dropped to 18.7% as of June 2025, marking one of the lowest rates in over two years.

He attributed the drop to:

Improved food supply due to bumper harvests

Stable fuel prices and enhanced energy supply

Tight monetary policy by the Bank of Ghana

Strengthened fiscal discipline under the IMF programme.

“We are on course to achieving our end-year inflation target of 15.5%,” Dr. Forson stated.

Cedi Regains Stability

Dr. Forson also highlighted the stabilization of the Ghanaian cedi, which he said had appreciated slightly against major currencies in the second quarter of 2025.

He credited this to:

Improved forex inflows from cocoa, gold and remittances

Continued IMF disbursements and World Bank budget support

Positive investor confidence and successful external debt restructuring

Growth Outlook Improving

The Minister reported that Ghana’s economy grew at 3.6% in the first half of 2025, with stronger performances in:

Agriculture (boosted by mechanized farming initiatives)

Construction and public works

Tourism and creative industries

Services (especially ICT and digital finance)

The revised full-year growth target now stands at 4.1%, slightly up from the 3.9% projected in the 2025 Budget.

“We expect even stronger growth in the second half of the year as private sector activity picks up,” he noted.

Stronger Reserves & Fiscal Control

Dr. Forson further revealed that Ghana’s gross international reserves had improved to 3.8 months of import cover, thanks to improved export earnings and prudent foreign exchange management.

On the fiscal front, the government posted a primary surplus of 0.6% of GDP for the first half of the year – a key IMF programme requirement.

No New Taxes, Focus Remains on Stability

While reassuring Ghanaians that no new tax measures would be introduced for the rest of 2025, Dr. Forson emphasized that the focus would remain on:

Containing expenditure

Broadening the tax base

Completing debt restructuring

Supporting key sectors like agriculture, health and digital innovation.

“We are not out of the woods yet, but we are clearly on the path to recovery and resilience,” he assured.

This year’s mid-year budget statement was delivered without the presence of the Minority in Parliament, who staged a walkout just before proceedings began. Nonetheless, the presentation went ahead uninterrupted and was widely watched across the country by policy analysts, civil society and development partners.