Finance Minister takes centre stage to present 2025 Budget Review today
Cedi Gains, Inflation Falls — Will Gov’t Stay the Course?
Ghana’s economic spotlight shines on Parliament today as Finance Minister Dr. Cassiel Ato Forson delivers the 2025 Mid-Year Budget Review, a critical address expected to confirm the government’s fiscal direction amidst improving macroeconomic indicators and emerging political pressures.
The review comes at a time when Ghana’s economic fundamentals are showing impressive recovery. Inflation, which started the year at 23.5 per cent, has declined to 13.7 per cent by the end of June. This downward trend has fuelled hopes that the country may achieve single-digit inflation before year-end—well ahead of the government’s original 11.9 per cent target.
On the currency front, the Ghanaian cedi has made a strong comeback. From GH¢15 to the US dollar in January, it is now trading at about GH¢10.45 on the interbank market—a remarkable 42.6 per cent appreciation year-to-date. This has had a ripple effect on consumer prices, with modest reductions seen at retail outlets, while manufacturers cautiously monitor stability under a 60-day agreement with key business groups.
Economic growth is also outperforming expectations. The Ghana Statistical Service reported a robust 5.3 per cent GDP growth in the first quarter, surpassing the government’s full-year target of 4.4 per cent. This could prompt a revision of projections in today’s review.
International reserves have surged to US$11.1 billion, now covering 4.8 months of imports—well above the initial target of three months. The boost has been credited to stronger-than-expected export earnings from gold and cocoa, increased remittances, and a renewed wave of investor confidence.
However, challenges remain. The recent removal of the betting tax earned praise from young voters and businesses, but the newly introduced GH¢1 fuel levy has sparked public discontent. Many stakeholders are watching closely to see if the Finance Minister will include a sunset clause or timeline for its eventual removal.
With these encouraging numbers on the board, expectations are high that government will resist the temptation to seek supplementary budget approval and instead maintain fiscal discipline. The real test lies in whether today’s presentation will reflect continued commitment to consolidation or signal an expansionary turn in the face of political and infrastructural demands.
As Dr. Forson takes the floor, stakeholders—from investors and manufacturers to development partners and civil society—will be listening keenly for signs of fiscal restraint, credibility, and long-term economic stewardship.
