Ghana has revised its fiscal deficit target for 2025 downwards, citing improved economic performance in the first half of the year. Finance Minister Cassiel Ato Forson, delivering a mid-year review to parliament, revealed that the government now projects a fiscal deficit of 3.8% of GDP, lower than the 4.1% forecast made in March.
The move comes as the West African nation steadily recovers from a severe economic crisis marked by inflation spikes, pressure on the cocoa and gold sectors, and a protracted debt restructuring effort. Encouragingly, recent macroeconomic indicators suggest a turnaround. Growth reached 5.3% year-on-year in the first quarter, and inflation declined to 13.7% in June, its lowest point since 2021.
Ghana recorded a 1.1% fiscal deficit in the first half of the year, outperforming the 2.4% projected. The finance minister noted that spending remained tightly controlled, and borrowing was lower than initially planned, signs of increasing fiscal discipline.
The government is optimistic that the economy could exceed its earlier 4% growth target for the year. Officials are also hopeful of reaching the year-end inflation goal of 11.9% ahead of schedule.
Despite the gains, Forson cautioned that challenges remain. Revenue and grants fell 3% short of target in the first six months, while expenditures were 14% below expectations. He also flagged concerns over falling customs revenues, rising wage pressures, and the smuggling of marine gas oil.
Nevertheless, the government sees the improved fiscal performance as a positive signal to investors and stakeholders that Ghana is on a firm path toward economic stability.
