Ghana’s economy appears to have regained momentum in the first year of President John Dramani Mahama’s administration, after a period marked by high inflation, elevated borrowing costs, and sluggish growth. Data from the Ministry of Finance indicates that the economy grew by 6.1 percent in the first three quarters of 2025, compared to 5.7 percent during the same period in 2024 — the fastest pace of expansion since 2019.
Growth outside the oil sector, which accounts for the majority of job creation, was even stronger, with non-oil GDP rising by 7.5 percent. A major highlight of the year was the sharp drop in inflation: headline inflation fell from 23.8 percent in December 2024 to 6.3 percent by November 2025, its lowest level in nearly six years. Both food and non-food inflation eased considerably, easing the financial burden on households
The disinflation has fed into the money market, easing financing conditions. Treasury bill rates dropped from over 30 percent at the end of 2024 to about 11 percent, sharply reducing government borrowing costs and improving liquidity conditions in the financial system.
On the forex front, the Ghana cedi recorded its strongest annual performance in years, appreciating against all major trading currencies. As at December 31, 2025, the cedi had gained 40.7 percent against the US dollar, 30.9 percent against the British pound, and 24 percent against the euro.
Ghana’s external payment position remained strong during the first ten months of 2025. By the end of October, the trade balance posted a surplus of 8.5 billion dollars, driven by higher export revenues and stricter import controls. Gross International Reserves stood at 11.41 billion dollars, equivalent to 4.8 months of import cover, further reinforcing the country’s external buffers.
In recognition of these gains, all three leading international rating agencies — Fitch, Moody’s, and S&P — upgraded Ghana’s credit ratings, citing improved fiscal consolidation and strengthening macroeconomic stability. Collectively, these developments highlight that the first year of the Mahama administration was characterized by stabilization — restoring price stability, bolstering the currency, enhancing external reserves, and supporting economic growth.
Source: Emmanuel Oppong
