Ghana's Economic Turnaround: Key Indicators Show Strong Gains in First Half of 2025
- bernard boateng
- Jul 28
- 2 min read
Ghana’s mid-year economic report paints a promising picture for the economy, as several key indicators reveal significant improvements between December 2024 and June 2025. From a drop in inflation and debt to a rebound in forex reserves and creditworthiness, the data signals cautious optimism for the rest of the year.
1. Inflation Falls Dramatically
Inflation decreased from 23.8% in December 2024 to 13.4% in June 2025, a 42.5% drop. This signals improved price stability, likely supported by tighter fiscal discipline, improved food supply, and monetary policy adjustments.
2. Cedi Strengthens Against the Dollar
The Ghanaian Cedi appreciated significantly, moving from 14.69/USD to 10.44/USD, marking a 40.6% gain. This could reflect stronger inflows from remittances, improved forex management under the IMF program, and confidence from external partners.
3. Public Debt Sees Marginal Relief
Ghana’s public debt declined from GHS 726.7 billion to GHS 613.0 billion, a 15.6% reduction. This may be attributed to debt restructuring efforts and fiscal consolidation under the IMF-supported program.
4. Foreign Reserves Bounce Back
Gross international reserves rose from $8.98 billion to $11.12 billion, a 23.8% increase. This suggests higher export earnings, renewed investor confidence, and better reserve management by the Bank of Ghana.
5. Treasury Bill Yields Fall
The 91-day T-Bill rate dropped from 27.73% to 14.69%, a 47.0% decline. This reflects a fall in government borrowing costs and suggests easing inflation expectations.
6. Fitch Credit Rating Improves
Perhaps most notably, Fitch Ratings upgraded Ghana’s credit status from "RD" (Restricted Default) to B-, a key signal to investors that the country is gradually recovering from its debt crisis.
Conclusion:
These mid-year gains suggest that Ghana is on a path of cautious recovery, bolstered by reforms, policy shifts, and better macroeconomic management. However, sustaining these improvements will require continued discipline, investor confidence, and structural reforms.
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