Ghana has achieved its statutory debt-to-GDP target of 45 per cent years ahead of both the International Monetary Fund programme timetable and the timeline established under the Public Financial Management Act, Finance Minister Dr Cassiel Ato Forson announced on Thursday during the presentation of the 2026 Mid-Year Fiscal Policy Review to Parliament.
The country's public debt declined sharply from 61.8 per cent of GDP at the end of 2024 to 44.7 per cent by the close of 2025, before edging slightly to 45.0 per cent by the end of June 2026.
For the first time since April 2014, Ghana's external and overall risk of debt distress has improved from high to moderate, while the joint World Bank-IMF Debt Sustainability Analysis has moved the country's debt rating from unsustainable in 2023 to sustainable with room to absorb shocks.
The primary balance on a commitment basis recorded a surplus of 2.5 per cent of GDP in 2025, exceeding the 1.5 per cent target by one percentage point, and achieved a further surplus of 0.9 per cent of GDP by the end of June 2026. Primary expenditure declined from 18.7 per cent of GDP in 2024 to 13.2 per cent in 2025, without hurting economic growth.
Dr Forson attributed the recovery to deliberate policy decisions rather than "good fortune," stating that Ghana's progress is "the result of superior economic management".
He noted that the government had reduced the number of ministers from a peak of 123 to 60 and cut ministries from 30 to 23, describing a leaner government as "not merely good politics, but also sound fiscal policy" .
Inflation declined from 23.8 per cent in December 2024 to 5.4 per cent at the end of 2025 and stood at 5.3 per cent in June 2026. The 91-day Treasury bill rate fell from 11.09 per cent in December 2025 to 5.73 per cent in June 2026, while the Monetary Policy Rate dropped by a cumulative 1,300 basis points from 27 per cent in January 2025 to 14 per cent in July 2026.
The cedi appreciated by 40.7 per cent against the United States dollar in 2025, with Bloomberg confirming it as the world's strongest-performing currency that year. Debt servicing as a share of domestic revenue fell sharply from 55.7 per cent in 2022 to 28.8 per cent in 2025, freeing up billions of cedis for schools, hospitals and roads.
Overcoming the 'Original Sin'
Dr Forson announced that Ghana has "overcome the original sin"—the inability of a country to borrow over the long term in its own currency—following the successful issuance of a GH¢2.7 billion seven-year cedi-denominated bond in April 2026, the first since the 2022 debt default. "Ghana has moved from default to credibility, from debt distress to debt sustainability, from market exclusion to renewed investor confidence," he told Parliament.
Ghana's economy grew at 6.4 per cent in the first quarter of 2026, well ahead of the 4.8 per cent full-year target, with non-oil GDP growing at 6.3 per cent. The Information and Communication subsector surged to 25.2 per cent growth, contributing 26.9 per cent to overall economic growth. The current account surplus increased to US$5.1 billion in the first half of 2026, while the cumulative trade surplus for the first half of the year reached US$8.8 billion, equivalent to 6.6 per cent of GDP.
Read the entire 2026 Mid-Year Fiscal Policy Review of the 2026 Budget Statement and Economic Policy of the Government of Ghana below;
