President John Dramani Mahama has announced significant economic gains, including strong GDP growth, a sharp reduction in public debt, and a dramatic fall in inflation, as he continues delivering the State of the Nation Address (SONA) in Parliament.
Addressing the House, the President said Ghana’s economy has expanded substantially, with Gross Domestic Product projected to hit 113 billion dollars in 2025 and growth reported at 6.1 percent.
“Our economy has grown significantly. In 2025, Ghana’s GDP is expected to reach 113 billion dollars. Growth is reported at 6.1 percent. But growth means nothing without discipline,” he stated.
Fiscal Discipline and Surplus
President Mahama highlighted improvements in fiscal management, noting that government outperformed its own surplus target, stating “Our primary surplus reached 2.6 percent of GDP, far exceeding our target of 1.5 percent.”
He added that the fiscal deficit closed at 3.1 percent, lower than the projected 3.8 percent noting that “This is not just prudent governance; it is promise-keeping,” the President declared. “It has benefited households and businesses because we have borrowed less and spent more responsibly.”
According to him, the improved fiscal discipline has led to falling interest rates and renewed business confidence, “Interest rates have fallen. Confidence has returned. Private businesses are breathing again,” he told Parliament.
Reflecting on the 2022 Debt Default
The President described December 19, 2022, as one of the most difficult moments in Ghana’s economic history.
“That day, Ghana declared its inability to honour its debt obligations. We declared a debt default and placed a moratorium on both domestic and foreign debt repayments,” he recalled.
He said the country subsequently entered a complex debt restructuring process at a time when repayment obligations between 2025 and 2028 were at their peak.
However, he insisted that his administration responded decisively, noting “We confronted this crisis with action, not rhetoric. We established sinking funds, restructured obligations, and pursued bilateral agreements.”
As a result, President Mahama reported that public debt has fallen by 82.1 billion Ghana Cedis, reducing the debt-to-GDP ratio from 61.8 percent to 45.3 percent.
“This is one of the sharpest reductions of debt in Ghana’s history,” he added.
Early Eurobond Settlement and Credit Upgrades
The President further revealed that government began the year by settling a 709 million dollar Eurobond ahead of schedule, part of a 1.4 billion dollar debt service obligation due in 2025.
“On January 2nd, when people were still recovering from New Year celebrations, we settled a 709 million dollar Eurobond ahead of schedule,” he said.
He noted that the move drew international recognition, revealing “Fitch, Moody’s, and Standard & Poor’s all upgraded Ghana’s credit ratings as the first triple upgrade in many years. Ghana’s credibility is restored. Ghana is rising.”
Inflation Drops Sharply
President Mahama also addressed the issue of inflation, which he described as the heaviest burden inherited by his administration. He said inflation peaked at 54.1 percent at the end of 2022 but declined to 23.5 percent by the end of 2024.
Through what he described as fiscal consolidation, currency stabilization and disciplined monetary policy, inflation has now fallen further.
“Inflation fell from 23.5 percent at the end of 2024 to 3.8 percent,” he announced.
The President maintained that the economic turnaround demonstrates the impact of disciplined leadership and responsible governance.
The State of the Nation Address is ongoing in Parliament, with further policy directions expected to be outlined.
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