The Minister for Finance, Dr Cassiel Ato Forson, is expected to present the Mid-Year Budget Review to Parliament on Thursday, July 24, 2025.

The presentation will provide updates on government expenditure and the implementation status of key policies outlined in the 2025 Budget.

A central theme of the 2025 Budget, presented on March 11, 2025 was the government’s commitment to taming inflation and ensuring exchange rate stability, in line with its economic reset agenda.

Key policy targets in the 2025 Budget:

i. Overall Real GDP growth of at least 4.0 percent

ii. Non-Oil Real GDP growth of at least 4.8 percent

iii. End-Period inflation rate of 11.9 percent

iv. Primary Balance on a commitment basis with a surplus of 1.5 percent of GDP

v. Gross International Reserves (including oil funds and encumbered/pledged assets) to cover not less than three months of imports

The finance minister also indicated that the government would implement several measures to complement the Bank of Ghana’s monetary and exchange rate policies to stabilise inflation and the cedi.

Measures to stabilise the exchange rate include:

i. Establishing the GoldBod to enhance the generation and accumulation of foreign exchange to support the cedi

ii. Continued FX forward auctions by the Bank of Ghana to stabilize the currency

iii. Strong fiscal consolidation through reduced public sector spending and narrowing of the fiscal deficit

iv. An import substitution strategy under the 24-Hour Economy initiative to boost domestic production of goods typically imported, thereby reducing forex demand

Economic gains so Far, according to the Bank of Ghana:

• The Ghanaian cedi has appreciated by over 42% year-to-date as of June 2025, reversing nearly all losses recorded in 2022 and 2023.

• Gross international reserves have risen to US$11.1 billion, providing 4.8 months of import cover, up from US$8.98 billion at the end of 2024.

• Ghana recorded a trade surplus of US$4.14 billion in the first four months of 2025, driven by a 60% increase in exports—mainly gold, cocoa, and oil.

The current account surplus surged to US$2.12 billion in Q1 2025, up from US$66 million in Q1 2024.

• Remittance inflows remain strong, and Ghana’s IMF-supported programme has passed successive reviews, resulting in a sovereign credit rating upgrade by S&P from Selective Default to CCC+.

The Mid-Year Budget Review is expected to address the country’s overall economic performance, debt restructuring progress, debt servicing, and outstanding arrears owed to contractors.

SSD/MA

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