Ghana Declares Recovery, Forecasts 4.8% GDP Growth

Ghana’s Finance Minister, Cassiel Ato Forson, announced a major victory on Thursday. The nation has successfully moved past its worst economic crisis in a generation. He declared the country is now poised for sustained growth. Speaking during his 2026 budget presentation, he proclaimed Ghana is “back, strong, credible, and open for business.”

Targets for Sustained Fiscal Health

The government has projected a minimum real Gross Domestic Product (GDP) growth of 4.8% in 2026. This positive forecast relies on rigorous fiscal reforms. These reforms aim to hit key financial targets: a 4.0% fiscal deficit and a 1.5% primary surplus.

Minister Forson highlighted the success of the government’s efforts. “We have restored fiscal discipline, brought inflation under control, stabilized the cedi, and rekindled investor confidence,” he stated. This outlines a clear path of economic recovery after severe financial turmoil.

Dramatic Inflation Decline and Monetary Shift

The positive turnaround is most visible in the inflation data. Inflation has plummeted from a record high of 54% in January 2023 to just 8% in October 2024. This figure is the lowest recorded since June 2021. It now successfully sits within the government’s target band.

This sustained decline in prices prompted the central bank to act. In September, the bank implemented a record 350-basis-point interest rate cut. This lowered the benchmark rate to 21.5% as macroeconomic conditions continued to improve steadily.

Renewed Confidence and Debt Market Return

Minister Forson asserted that Ghana’s economic narrative has shifted decisively. It moved “from one of crisis to recovery and renewal.” He then announced government plans to re-enter the domestic debt markets in 2026.

The Finance Minister directly appealed to the country’s international partners. He stressed that Ghana’s restored economic credibility makes it a compelling and secure investment destination. This credibility was achieved through prudent policies and successful fiscal reforms.

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