Revamping Ghana’s Economy: The 20 key reforms and milestones that shaped 2025

The year 2025 will be remembered in Ghana’s economic history as the moment the reset truly began. Faced with inflation over 23%, interest rates above 30%, a rapidly weakening cedi, shaken investor confidence, and unsustainable debt, the Mahama Administration acted swiftly and decisively to stabilise the economy and restore trust. Leading the recovery effort was Finance Minister Dr. Cassiel Ato Forson, supported by a President whose strong leadership and unwavering political backing drove the turnaround.

Here are 20 major macroeconomic achievements and reforms from 2025 that collectively revitalized Ghana’s economy.

Growth Reignited

1. GDP expanded by 6.1% in the first three quarters of 2025, up from 5.7 percent over the same period in 2024 — the fastest growth since 2019.

2. Non-oil GDP growth surged to 7.5%, 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

3. Headline inflation collapsed from 23.8% in December 2024 to 6.3% by November 2025, the lowest since February 2019.

4. Food inflation fell by 21.2 percentage points to 6.6%.

5. Non-food inflation eased by 14.2 points to 6.1%.

6. Inflation on locally produced items declined to 6.8% from 26.4%.

7. Imported inflation dropped to 5.0% from 18.0%.

For households, this meant restored purchasing power and relief at the market stalls.

Interest Rates Collapse

8. Treasury bill rates plunged from over 30% at end-2024 to about 11% in 2025, cutting government borrowing costs and unlocking credit to the private sector.

9. Cedi Makes History: For the first time in many years, the cedi recorded an annual appreciation against all major currencies:

•             40.7% against the US dollar

•             30.9% against the pound sterling

•             24.0% against the euro

This reversed the painful depreciation of 2024.

External Position Strengthened

10. Trade balance posted a surplus of US$8.5 billion by the end of October 2025, up from US$2.8 billion a year earlier.

11. Current account surplus widened to US$3.8 billion in the first three quarters, from US$0.6 billion in 2024.

12. Gross international reserves rose to US$11.41 billion, covering 4.8 months of imports.

13. 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.

14. 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.

15. Fiscal Discipline Return: A primary surplus of 1.9% of GDP was achieved by October 2025, tripling the initial target of 0.6%.

Pro-Growth Reforms

16. 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.

17. Strengthened fiscal rules, amending the PFMA to cap debt at 45% of GDP by 2034 and require a minimum 1.5% primary surplus annually.

18. Abolished nuisance taxes such as the Betting Tax, Emission Tax and e-Levy to ease the cost of doing business.

19. 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.

20. 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% return with volumes up 146%.

•             Fixed income trading jumping to GH¢108.23 billion, a 51 percent year-on-year increase.

A Reset, Not a Pause

These 20 achievements are not just statistics; they represent a restored belief in Ghana’s future. They reflect long nights at the Ministry of Finance, hard political choices, and a President and Finance Minister working in lockstep to rescue the economy.

But 2026 is not a time for complacency. It is the year to deepen reforms, sustain discipline, and complete the reset — so that the gains of 2025 become a permanent foundation for growth, jobs and prosperity.

Source: Accra Business News