Finance Minister Dr. Cassiel Ato Forson has painted a sobering picture of Ghana’s economic situation while presenting the 2025 Budget Statement and Economic Policy to Parliament, but assured Ghanaians that the Mahama-led administration is committed to restoring stability and growth.
Addressing Parliament, Dr. Forson stated, “Mr. Speaker, the state of our economy is troubling, but we will fix it. It will require some sacrifices, truthfulness, transparency, and discipline.”
According to him, the financial sector continues to struggle despite a cumulative GH¢30.3 billion cleanup exercise as of the end of 2024, disclosing that GH¢10.45 billion will be needed to address legacy issues and emerging risks within the sector.
Additionally, GH¢2.2 billion is required to recapitalize the National Investment Bank and the Agricultural Development Bank.
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Touching on fiscal performance, Dr. Forson revealed that the 2024 primary balance on a commitment basis deteriorated to a deficit of 3.9% of GDP, falling far short of the target surplus of 0.5%. “This is a 4.4% worse outcome than projected,” he noted.
He further disclosed that government debt had risen to GH¢726.7 billion by the end of 2024, up from GH¢610 billion in 2023. “While the debt-to-GDP ratio appears to have declined, this is largely due to the 37% haircut on Eurobond debt under the restructuring programme,” he clarified.
On a positive note, he reported that gross international reserves had improved to $8.98 billion, covering four months of imports above the three-month target.
Dr. Forson also highlighted growth in real GDP, which rose to 5.7% in 2024 from 3.1% in 2023, primarily driven by the mining sector. However, he cautioned, “Gold-driven growth cannot be sustainable.”
Despite the challenges, he reaffirmed the government’s commitment to economic revival, stating “We are committed to completing the remaining 7% of our debt restructuring and staying the course on the reforms needed to build a resilient and inclusive economy.
Mr. Speaker, it is what it is. But trust me, we will fix it,” Dr. Forson reiterated.
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Source: Comfort Sweety Hayford/ATLFMNEWS
