In a recent interview, Felix Kwakye Ofosu, the Minister for Government Communications, asserted that Ghana’s economic landscape has seen remarkable progress since the National Democratic Congress (NDC) led by President John Dramani Mahama took office in January 2025. This assertion was made during a discussion on TV3’s Hot Issues program, where the Minister reviewed the achievements of the administration in its first year.
According to Kwakye Ofosu, many objective observers would concur that the nation’s economic status is considerably improved compared to the previous administration. He emphasized that the economy was a crucial concern for Ghanaian voters, making the recent advancements particularly noteworthy.
Highlighting tangible improvements, the Minister pointed to a significant reduction in the cost of living, driven by falling prices in various sectors. Additionally, he remarked on the enhancement of the Ghana cedi, a currency that has faced long-standing depreciation issues. The cedi is anticipated to appreciate by nearly 30 percent annually, a notable achievement not seen in many years.
Data from Bloomberg indicates that the cedi’s appreciation may be even greater than the Minister’s expectations, with reports showing an increase of around 41 percent in 2025, making it one of the top-performing currencies globally. The Bank of Ghana confirmed that the cedi closed the year at 10.45 to the US dollar, a significant improvement from approximately 14.70 cedis in January 2025.
Furthermore, forex bureau rates revealed a rise from around 17 cedis to 12.30 cedis, representing an impressive 27.75 percent gain. This turnaround comes after a period of volatility that saw the cedi among the weakest in emerging markets, particularly after losing nearly 24 percent of its value in 2024.
In addition to currency improvements, the Bank of Ghana’s gold reserves reached 38.04 tonnes by October 2025, up from 8.78 tonnes in May 2023, while international reserves expanded by approximately 24 percent to around $11.4 billion. The Gold for Reserves initiative has been praised for providing the central bank with a solid asset foundation, reducing dependency on US dollars.
Moreover, inflation rates have shown a consistent decline, dropping from 23.8 percent in January to 6.3 percent by November 2025, marking the lowest levels since 2021. The government also successfully met its budget deficit target of 2.8 percent for 2025, supported by a $3 billion IMF program, and aims for further reductions in the coming year.
Ghana’s total public debt has decreased from 726.7 billion cedis, representing 61.8 percent of GDP in 2024, to 630.2 billion cedis, equivalent to 45 percent of GDP as of October 2025. Finance Minister Ato Forson cited fiscal discipline and prudent borrowing as key components of this fiscal turnaround.
In the realm of international finance, Ghana’s restructured dollar bonds yielded over 30 percent returns in 2025, placing them among the top-performing assets in emerging markets. The IMF acknowledged the success of the economic program during its Fifth Review in December 2025, noting that Ghana met its 2028 reserve coverage target three years early.
The World Bank attributed the cedi’s strength to stringent monetary and fiscal policies, increased export earnings from gold and cocoa, and a positive market outlook. Forbes reported the cedi as the fourth-best performing currency in Africa, valued at 10.93 cedis per US dollar.
However, analysts caution that this strength is intricately linked to gold prices, raising concerns about potential vulnerabilities if global market conditions shift. To mitigate risks, the government is pursuing strategies to refine gold domestically rather than solely relying on raw exports, with a new national refinery expected to commence operations in mid-2026.
As the Mahama administration celebrates a year in office, officials are highlighting the economic recovery and improved living standards as significant milestones achieved during their tenure. This performance notably contrasts with earlier forecasts, which had anticipated that the cedi would end 2025 valued between 15.30 and 17.70 cedis to the dollar.
