Ghana’s 2025 Mid-Year Budget: Strong Economic Growth and Stability Signs Emerge
The Government of Ghana, through the Ministry of Finance, presented the much-anticipated 2025 Mid-Year Budget Review today, July 23, 2025 — highlighting notable gains in key macroeconomic indicators compared to the same period last year.
Despite existing global economic uncertainties and domestic recovery efforts, the latest data suggests that Ghana is charting a positive economic trajectory across several fronts, including GDP growth, inflation, trade performance, and currency stability.
Below is a breakdown of the key economic indicators, comparing 2025 mid-year figures with those from 2024, based on data from the Bank of Ghana (BoG) and the Ghana Statistical Service (GSS).
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Real GDP Growth Improves
•Q1 2025 Real GDP Growth: 5.3%
•Q1 2024 Real GDP Growth: 4.9%
Ghana’s economy has posted a stronger performance in the first quarter of 2025, driven largely by rebounds in agriculture and manufacturing. The 0.4 percentage point increase reflects expanding productivity and resilience in the post-COVID recovery era.
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Agriculture & Manufacturing See Massive Boost
•Agriculture Growth (Q1 2025): 6.6%
(vs. 2.4% in Q1 2024)
•Manufacturing Growth (Q1 2025): 6.6%
(vs. 1.9% in Q1 2024)
These sectors appear to be the real drivers of the 2025 recovery. The agriculture sector more than doubled its growth rate, suggesting improved food production, better access to financing, and possibly stronger agri-related exports. Manufacturing’s rise signals higher local production and industrial output.
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Inflation Drops Significantly
•Headline Inflation (Mid-2025): 13.7%
•Headline Inflation (End-2024): 23.8%
Ghanaians can breathe a little easier, with the inflation rate declining by more than 10 percentage points compared to December 2024. This decline reflects tighter monetary policies and improved food supply.
•Producer Price Index (PPI):
•Mid-2025: 5.9%
•End-2024: 26.1%
The significant drop in PPI indicates that production costs are stabilizing, which may further reduce consumer prices in the coming months.
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Trade and Current Account Surplus Soar
•Trade Surplus (Mid-2025): $5.6 billion
•Trade Surplus (Mid-2024): $1.4 billion
•Current Account Surplus (Mid-2025): $3.4 billion
•Current Account Surplus (Mid-2024): $283.1 million
These figures show Ghana is exporting more than it’s importing — a healthy sign for the economy. Key export commodities like gold, cocoa, and oil likely contributed to this surplus, alongside reduced dependence on imports.
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Foreign Reserves Rise, Currency Strengthens
•Gross International Reserves (Mid-2025):
$11.1 billion (4.8 months import cover)
•Gross International Reserves (End-2024):
$8.9 billion (4.0 months import cover)
Ghana’s international reserves have seen a notable boost, enhancing the country’s buffer against external shocks.
•Cedi to Dollar Rate (Mid-2025): GH¢10.45/$1
•Cedi to Dollar Rate (End-2024): GH¢14.70/$1
The Ghana cedi has made a strong recovery — appreciating nearly 30% against the US dollar. This trend reflects restored investor confidence and effective BoG interventions.
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Final Thoughts
The 2025 Mid-Year Budget comes at a time when many Ghanaians are demanding real economic relief. While the numbers paint a much-improved macroeconomic picture, the impact on household income, job creation, and access to affordable goods remains the key test.
If these trends continue into Q3 and Q4, Ghana could position itself as one of the top economic performers in West Africa by the end of 2025.
#JoyEverywhere — But #PainsOverThere might perfectly capture the sentiment: the numbers give joy, but citizens now look to the government for real-life, day-to-day relief beyond data.
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Source:
Bank of Ghana (BoG), Ghana Statistical Service (GSS), Ministry of Finance Mid-Year Budget Presentation – July 23, 2025.
