The Ghana economic reset of 2025 marked a decisive turning point for the country’s economy. Inflation was running above 23 per cent, treasury bill rates exceeded 30 per cent, the cedi had sharply depreciated, investor confidence was fragile, and public debt levels were unsustainable. In response, the Mahama Administration, with active leadership from Finance Minister Dr. Cassiel Ato Forson and presidential backing, implemented a comprehensive series of reforms aimed at stabilising macroeconomic fundamentals and restoring market trust.
This report examines the 20 major reforms and achievements of 2025, highlighting their implications for businesses, investors, and the banking sector within the broader context of the Ghana economic reset.
1. Economic Growth and Diversification
Ghana’s GDP expanded by 6.1 percent in the first three quarters of 2025, up from 5.7 percent in the same period of 2024. Non-oil GDP grew even faster, at 7.5 percent, indicating broad-based expansion in sectors that create the majority of jobs. These figures mark the fastest economic growth since 2019 and signal a decisive rebound from prior stagnation.
For businesses, this growth translates into higher consumer demand, expanded market opportunities, and improved confidence in domestic investment prospects.
2. Inflation and Interest Rates Stabilized Under the Ghana’s Economic Reset
Inflation control was a central pillar of the Ghana economic reset. Headline inflation fell sharply from 23.8 percent in December 2024 to 6.3 percent by November 2025, while food inflation dropped 21.2 points to 6.6 percent, and non-food inflation eased to 6.1 percent. Locally produced goods saw inflation decline to 6.8 percent from 26.4 percent, and imported inflation fell to 5.0 percent from 18.0 percent.
The banking sector responded to these developments with lower lending rates. Treasury bill rates dropped from above 30 percent to approximately 11 percent, reducing the government’s borrowing costs and freeing credit for the private sector. Lower rates have also improved household purchasing power, allowing businesses to plan investments with greater certainty.
3. Currency Appreciation and External Position
As part of the ongoing Ghana economic reset, the Ghanaian cedi experienced a remarkable turnaround, appreciating for the first time in years against major currencies:
- 40.7% versus the US dollar
- 30.9% versus the British pound
- 24.0% versus the euro
This reversal of the 2024 depreciation has improved import affordability and strengthened investor confidence.
Ghana’s external accounts also strengthened significantly. The trade balance reached a US$8.5 billion surplus by October 2025, up from US$2.8 billion in 2024, while the current account surplus expanded to US$3.8 billion. Gross international reserves rose to US$11.41 billion, covering nearly five months of imports, providing the central bank with flexibility to manage currency stability.
4. Public Debt Reduction and Fiscal Discipline
Public debt declined sharply from GH¢726.7 billion (61.8% of GDP) in December 2024 to GH¢630.2 billion (45% of GDP) by October 2025, representing one of the fastest reductions in the country’s history. Ghana achieved a primary fiscal surplus of 1.9 percent of GDP, tripling the initial target of 0.6 percent.
Credit rating agencies responded positively: Fitch, Moody’s, and S&P all upgraded Ghana’s sovereign ratings, signaling renewed fiscal credibility. For lenders, this reduces sovereign risk and lowers the cost of financing for both public and private projects.
5. Pro-Growth Tax and Fiscal Reforms
Several fiscal measures were implemented to stimulate business activity:
- VAT was reduced to 20 percent, the COVID-19 Levy was abolished, VAT input deductions restored, and the threshold raised to GH¢750,000.
- Certain nuisance taxes, including the Betting Tax, Emission Tax, and e-Levy, were removed to ease operational costs.
- Oil revenues, mining royalties, and DACF transfers were redirected to priority infrastructure projects under “The Big Push,” with local governments receiving at least 80 percent direct transfers.
These measures are expected to enhance business cash flows, encourage investment, and support growth in both formal and informal sectors.
6. Financial Sector Reset
The financial sector underwent a major restructuring. The National Investment Bank was recapitalised with GH¢1.92 billion, total funds under management rose to GH¢85.53 billion, the GSE Composite Index returned 27.82 percent with trading volumes up 146 percent, and fixed income trading jumped to GH¢108.23 billion, a 51 percent increase year-on-year.
These reforms have improved liquidity, strengthened market confidence, and expanded investment opportunities, particularly for domestic and institutional investors.
Foundations for 2026 and Beyond
The 2025 reset demonstrates that fiscal discipline, monetary stability, and targeted reforms can rapidly restore macroeconomic balance. For businesses, these achievements provide a more predictable operating environment, lower financing costs, and stronger consumer demand. Banks and investors benefit from reduced credit risk, improved sovereign ratings, and broader opportunities in both equities and fixed income markets. The Ghana economic reset is underway, but its full benefits will only materialise if momentum is maintained into 2026.
However, 2026 presents a new set of challenges: sustaining fiscal discipline, managing global economic headwinds, and deepening structural reforms will be essential to make the gains of the Ghana economic reset permanent. The reset is underway, but its full benefits will only materialise if momentum is maintained.
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