The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has reported that the country is making clear progress in restoring fiscal stability after years of economic turbulence.
Speaking at the opening of the 125th Monetary Policy Committee (MPC) Meeting in Accra on Monday, July 28, Dr. Asiama said the country’s fiscal outlook is showing positive signs, driven by prudent policy choices and tighter controls on public spending.
His comments come on the back of improved macroeconomic indicators outlined in the 2025 Mid-Year Budget Review presented by Finance Minister, Dr. Cassiel Ato Forson, including lower inflation, reduced public debt, and a strong primary balance.
“On the fiscal front, significant progress has been made. The 2025 Mid-Year Budget Review highlights notable achievements: a primary surplus of 1.1 percent of GDP (well above the 0.4 percent target), a reduction in the overall fiscal deficit to 0.7 percent of GDP, and actual expenditures coming in 14.3 percent below target,” he outlined.
Dr. Asiama further revealed that the country has also recorded a rare 15.6 percent drop in its public debt stock in the first half of the year, pushing the debt-to-GDP ratio down to 43.8 percent.
“These outcomes signal a credible path to debt sustainability and macroeconomic stability,” he said.
He also pointed to other positive improvements, including a stronger cedi, increased trade surplus, and a rebound in economic activity.
However, he urged the MPC not to lose sight of potential risks like exchange rate volatility, global oil price shocks, and the possible impact of new taxes on inflation expectations.
