Accra, Ghana — Ghana is rebounding from its worst economic crisis in decades, President John Dramani Mahama told Parliament on Friday, pointing to slowing inflation, a firmer currency, widening foreign reserves and falling debt as key signs that the West African nation’s economy is stabilising.
Delivering his State of the Nation address to lawmakers in the capital, Mahama declared: “Ghana is back. Ghana is working again. Ghana is open for business.” He said the country’s recovery was anchored in sound policy, fiscal discipline and structural reforms. “Our focus now is stability, jobs, and growth. We have laid the foundation — and we will protect it.”
Ghana sought an International Monetary Fund (IMF) bailout in December 2022 after surging public debt, steep currency depreciation and soaring prices pushed it into default and forced painful fiscal reforms and lengthy debt restructuring talks with creditors. Mahama, re‑elected in December 2024, told Parliament that the worst chapter of the economic crisis was over, but that consolidation must now follow recovery.
Speaking under the theme “Building Prosperity, Restoring Hope,” Mahama said the reset agenda of his government was already yielding measurable results for ordinary Ghanaians. “Our nation is on the runway. It is in take‑off mode, and you are all advised to fasten your seatbelts. The journey continues. But the direction is set. And the hope is real.”
He pointed to strong macroeconomic performance over the past year, saying Ghana’s 2025 GDP is expected to reach $113 billion, up from $83 billion at the end of 2024, which places Ghana among Africa’s top 10 largest economies. Average GDP growth for the first three quarters of 2025 was about 6.1 percent, Mahama said.
Inflation, a major driver of hardship for households, has slowed sharply. It peaked at 54.1 percent at the end of 2022 but fell steadily, reaching 3.8 percent in January 2026 through disciplined fiscal and monetary policy, he said.
Mahama framed the recovery as more than statistical improvement. “This is not just prudent governance; it is promise‑keeping. It has benefited households and businesses because we have borrowed less and spent more responsibly, interest rates have fallen, confidence has returned, and private businesses are breathing again.”
He emphasised the performance of the national currency, dismissing views that it had merely been “arrested”. “We did not arrest the dollar; we strengthened the cedi to put up a good fight against other currencies,” he said, noting the cedi appreciated roughly 40.7 percent against the US dollar, over 30 percent against the British pound and 24 percent against the euro.
Public finances have also improved, with Ghana posting a primary budget surplus and reducing the debt‑to‑GDP ratio from about 61.8 percent to 45.3 percent, Mahama said. The government settled $1.4 billion in debt service obligations for 2025, including the early repayment of a major eurobond, actions that helped restore credit market confidence.
Mahama highlighted foreign reserves of roughly $13.8 billion, equivalent to nearly six months of import cover, while Ghana recorded an 8.1 percent current account surplus, supported by robust gold and cocoa exports and rising remittance inflows. “Our external position has strengthened significantly, demonstrating that our economy is gaining strength and resilience on the global stage.”
The president outlined a series of policy measures designed to sustain the recovery and deepen structural transformation. Key among them is the 24‑Hour Economy and Accelerated Export Development Programme, aimed to unlock round‑the‑clock economic activity, deepen value chains, boost productivity and create jobs, particularly in agriculture, manufacturing, logistics and services. “On 6th February 2026, this august House passed the 24‑Hour Economy Authority Bill… All is now set for take‑off,” he told legislators.
Fiscal reforms implemented by the government include the abolition of several unpopular taxes, such as the E‑Levy and COVID‑19 levy, comprehensive reform of the Value‑Added Tax system, raising the VAT threshold for small businesses and extending zero‑rating on textiles through 2028. “These fiscal reforms have effectively put GH₵6 billion back into the pockets of Ghanaians,” he said.
Mahama also emphasised agricultural transformation, particularly in the cocoa sector, where reform of producer pricing was undertaken to ensure competitive pricing, improve farmer incomes and resolve long‑standing debt accrued by the government. “Failure to do this would have taken us right back to the very devastating economic problem that we have only recently begun to escape,” he said.
Energy was another priority, with the government reporting the full repayment of a $500 million World Bank guarantee tied to reform, rolling back legacy debts, renegotiating power purchase agreements and inviting new investments into offshore oil and gas fields to strengthen energy security. “We are paying for every gas we are consuming today,” Mahama told Parliament.
On external resilience, Mahama introduced the Ghana Accelerated National Reserve Accumulation Policy, aimed at building up foreign reserves to 15 months of import cover by the end of 2028, bolstering macroeconomic stability and shielding the economy against future shocks. “We have an opportunity to build an economic war chest to withstand global shocks, improve living standards and build lasting prosperity for future generations,” he said.
Mahama stressed that the recovery is not solely about economics but also about national unity and progress. “Ghana’s resilience depends not only on policy but on the integrity, effort and civic spirit of its people — farmers, traders, teachers, nurses, artisans and entrepreneurs,” he said.
He concluded with a note of optimism: “However long the night, the dawn will break. The dawn is breaking for Ghana.”
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