Ghana claims economic turnaround as debt risk eases and inflation plunges

Finance Minister, Dr Cassiel Ato Forson, says the country has made significant progress in stabilising its economy, claiming that key indicators have improved dramatically after years of financial turmoil that culminated in a sovereign debt crisis.

Speaking at a public event, Dr Forson said Ghana had moved from debt distress to a "moderate risk" of debt distress, citing a decline in the country's debt-to-GDP ratio to 44.7%.

He said the figure had already reached a target that the International Monetary Fund (IMF) had projected Ghana would only achieve by 2034.

"Eight years, we used one single year to achieve that," he said.

The minister contrasted the current situation with the economic crisis that saw major international credit rating agencies downgrade Ghana in 2022.

He noted that Moody's cut Ghana's rating to Caa1, while S&P and Fitch also downgraded the country, effectively shutting it out of international capital markets.

According to Dr Forson, the crisis led to soaring borrowing costs, difficulties accessing external financing and the failure to secure a syndicated loan for the first time in more than three decades.

"But the good news is that today our country is back," he said.

The minister outlined a range of economic indicators which he said

demonstrated the recovery. He said Ghana's economy had surpassed the $100bn (£74bn) mark, making it one of Africa's largest economies, and reported non-oil GDP growth of 7.6% - the highest level in 14 years.

He also pointed to a sharp fall in inflation, which he said had dropped from 23.8% in December 2024 to 3.4% in April 2026.

Government borrowing costs have also fallen significantly, according to the minister. He said yields on 91-day Treasury bills had declined from 28.4% to 4.8%, while longer-term government bonds were trading between 11% and 12%, compared with about 25% in previous years.

Dr Forson added that the Bank of Ghana's policy rate had been reduced from 27% to 14%, and that the country had recorded a current account surplus after years of deficits.

The finance minister credited the administration of President John Mahama for the turnaround, saying the government had "turned everything around" since taking office.

The claims have not been independently verified, and economists are likely to scrutinise the figures and the sustainability of the improvements as Ghana continues its IMF-supported economic reform programme.