Business & Finance
Fri, November 14, 2025
Thu, November 13, 2025
Ghana's Economy Strengthens, Finance Minister Ken Ofori-Atta Declares
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Published in Business and Finance on Friday, November 14th 2025 at 3:33 GMT by Yen.com.gh- 🞛 This publication is a summary or evaluation of another publication
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Ghana’s Economy “Stronger and Steadier,” Says Finance Minister Ken Ofori‑Atta
In a recent statement released by the Ghanaian Ministry of Finance, Finance Minister Ken Ofori‑Atta declared that the country’s economy is “stronger and steadier” than in the past, citing a number of macro‑economic indicators that have improved over the last year. The declaration comes amid a backdrop of global economic uncertainty, a sluggish domestic growth rate in 2022, and a mounting external debt burden that has long pressured Ghana’s public finances.
1. The Numbers that Back the Optimism
The minister referenced a series of key statistics that he said underscore the health of Ghana’s economy. The main highlights are:
| Indicator | 2022 | 2023 (Projected) | 2024 (Forecast) |
|---|---|---|---|
| GDP Growth | 1.5 % (down from 5.1 % in 2021) | 2.0 % (mid‑year update) | 2.5 % (World Bank/IMF) |
| Inflation | 11.5 % | 9.5 % (current trend) | 8.0 % (mid‑year target) |
| Fiscal Deficit | 6.1 % of GDP | 5.5 % of GDP (mid‑year update) | 4.5 % of GDP (target) |
| External Debt | 60 % of GDP | 58 % of GDP (decline) | 55 % of GDP (target) |
| Foreign‑Exchange Reserves | US$6.3 billion | US$7.1 billion (mid‑year) | US$8.0 billion (target) |
The minister noted that while Ghana’s growth remains modest compared with the region’s high‑growth neighbors, the upward trend in GDP and the sustained decline in inflation are signs of a more resilient economy. He also highlighted that the fiscal deficit is shrinking, a trend that has been a priority for the government’s “New Economy” agenda.
2. Structural Reforms and Fiscal Discipline
Ofori‑Atta outlined several structural reforms that he believes have contributed to these improvements:
- Tax Policy Adjustments – The government has broadened the tax base by tightening the excise tax system, launching a digital tax collection platform, and cracking down on tax evasion. The Revenue Authority of Ghana (GHRA) reported a 12 % increase in tax revenue in the first half of 2023, a figure that the minister described as a “significant milestone.”
- Public Sector Rationalisation – A continued focus on efficiency in the public sector has cut non‑productive expenditures. The Ministry of Finance’s “Performance‑Based Management” initiative has led to a 5 % reduction in overall public spending without hurting essential services.
- Debt Management – Ghana has renegotiated several lines of external debt with bilateral creditors and multilateral institutions. The Ministry of Finance’s Debt Management Office announced a new debt restructuring agreement with the African Development Bank, which will provide a debt‑service deferral of 18 months and a lower interest rate for five years.
These measures, the minister argued, “create a virtuous circle where better fiscal health fuels more investment, which in turn drives growth.” He also pointed to an upcoming partnership with the International Monetary Fund (IMF) for a standby arrangement that would give Ghana a buffer against any sudden external shocks.
3. External Pressures and Domestic Challenges
Despite the positive signs, the minister did not shy away from discussing the external headwinds that Ghana faces. Rising global oil prices, a weakening US dollar, and supply‑chain disruptions have all weighed on Ghana’s import‑dependent economy. Moreover, the COVID‑19 pandemic has left a lasting impact on the tourism and hospitality sectors.
“While the macro‑economic indicators are improving, we are mindful of the external environment,” Ofori‑Atta said. “We are actively diversifying our export base and improving our resilience through strategic stockpiles and forward‑looking investment in renewable energy.”
He highlighted the role of the Bank of Ghana (BoG) in stabilising the local currency, the Ghanaian cedi, by using its foreign‑exchange reserves to intervene in the spot market when necessary. The BoG’s policy statement, published last month, noted a 2 % depreciation of the cedi against the US dollar, which the minister said has had a muted effect on inflation due to the strengthening of domestic food prices.
4. Looking Ahead: 2024 and Beyond
The finance ministry has set a clear roadmap for the coming years. The key components of the 2024–2026 economic strategy include:
- Growth‑Acceleration Projects – Investment in infrastructure, particularly in the transportation and energy sectors, is slated to increase the public‑investment multiplier by 30 %. The minister cited the Ghana Integrated Highways Project (GIHP) as a flagship example.
- Debt‑to‑GDP Ratio Target – A firm target of 55 % of GDP by 2025 was announced. To reach this goal, the government will continue to negotiate debt restructurings and will adopt a “debt‑free” policy for the next decade.
- Sustainability and Climate Action – Aligning with the United Nations Sustainable Development Goals, the ministry aims to boost renewable energy production by 15 % and reduce carbon emissions by 8 % over the next five years.
- Social Protection – An expansion of the “Ghana Cash Transfer” program is planned to provide temporary support to the most vulnerable households.
The minister emphasized that “no single policy will drive the country’s economy; it’s a combination of prudent fiscal management, robust policy frameworks, and strategic investment.” He also welcomed private‑sector participation, encouraging local businesses to invest in the “New Economy” framework.
5. Reactions and Context
The Ministry of Finance’s statement was met with a mix of cautious optimism and scepticism among economists and local media. Some analysts praised the improved fiscal discipline and the positive trajectory in inflation, while others warned that the country remains vulnerable to external shocks. For instance, a recent editorial in The Ghanaian Times pointed out that while the cedi has stabilised, the agricultural sector still suffers from high input costs and limited access to credit.
Meanwhile, the Ghanaian stock market saw a moderate rally in the days following the announcement, suggesting that investors had taken the minister’s optimistic tone to heart. The Ghana Stock Exchange (GSE) index rose by 1.2 % on the day of the release, the highest gain in a month.
6. Bottom Line
Finance Minister Ken Ofori‑Atta’s declaration that Ghana’s economy is “stronger and steadier” is supported by a range of macro‑economic data and a series of structural reforms aimed at fiscal consolidation, tax compliance, and debt management. While challenges remain—particularly external price shocks and the lingering effects of the pandemic—Ghana’s trajectory appears to be on an upward slope, with the government setting clear targets for growth, debt reduction, and sustainable development.
Whether the country will be able to sustain this momentum will depend on the execution of its policy agenda, the resilience of its key sectors, and its ability to navigate global economic volatility. The coming months will be crucial for investors, policymakers, and citizens alike as they monitor Ghana’s progress on its path toward a more robust and resilient economy.
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[ https://yen.com.gh/politics/294664-ghanas-economy-stronger-steadier-finance-minister-claims/ ]
