Ghana has revised its 2025 fiscal deficit forecast downward, citing improved economic performance in the first half of the year.
Finance Minister Cassiel Ato Forson told parliament Thursday that the deficit is now expected at 3.8% of GDP, tighter than the 4.1% projected in March.
The move follows stronger-than-expected economic indicators, including 5.3% year-on-year growth in the first quarter and inflation dropping to 13.7% in June. Ghana, once gripped by its worst economic crisis in a generation, is seeing early signs of revival following a painful debt restructuring process.
Forson said the government had borrowed less than planned, reflecting what he called “strong expenditure control and fiscal discipline.” In the first half of the year, the budget deficit stood at 1.1% of GDP, significantly ahead of the 2.4% target for the period.
While revenues fell short by 3%, spending came in 14% below projections, helping close the gap. Officials now believe the economy could surpass the 4% growth forecast and meet the year-end inflation target of 11.9% ahead of time.
“This is a strong signal to investors that Ghana’s fiscal consolidation is real and sustainable,” Forson declared. Still, challenges remain.
Forson warned of ongoing risks, including customs revenue shortfalls, rising public sector wage demands, and the smuggling of marine gas oil. Despite the progress, he cautioned, “Ghana is not out of the woods yet.”