We'll stabilise Ghana's economy within two years through tough decisions

Finance Minister Dr. Cassiel Ato Forson has reaffirmed the government’s commitment to implementing difficult but necessary economic reforms, insisting that the next two years will be crucial to securing long-term macroeconomic stability and setting Ghana on a sustainable growth path.

Speaking on the Citi Breakfast Show on Friday, July 24, after presenting the 2026 Mid-Year Budget Review, Ato Forson said the government remains firmly focused on completing its fiscal consolidation agenda and will not relent on implementing critical reforms, despite growing signs of economic recovery.

He described 2025 as an “exceptional year,” explaining that the government’s “shock therapy” approach required bold fiscal measures aimed at restoring economic stability after years of severe macroeconomic challenges.

According to him, the consolidation strategy was driven largely by expenditure controls, with primary spending in 2025 reduced to 2023 nominal levels. He noted that the fiscal adjustment on expenditure amounted to 5.5% of Gross Domestic Product (GDP), resulting in primary expenditure declining from 18.7% of GDP in 2024 to 13.2% by the end of the 2025 fiscal year.

“The shock therapy worked and the medicine was the shock therapy. We were going to go to the extreme, take the difficult decisions and, as much as possible, consolidate,” Dr. Forson stated.

The Finance Minister stressed that while the reforms implemented in 2025 had begun yielding positive results, 2026 would be equally critical in ensuring the gains are sustained.

“But let me say, Bernard, 2026 is as equally important as 2025 in the sense that we need to take all the hard decisions within two years and stabilise this economy once and for all so that this country can take off. I’m not relaxing, and the government does not seek to relax. We’ll do what we have to do,” he said.

His comments come a day after he presented the 2026 Mid-Year Budget Review to Parliament, outlining improvements across key macroeconomic indicators and highlighting what government describes as the early impact of its fiscal and economic reforms.

Among the key outcomes announced in the budget was a significant decline in multidimensional poverty. Dr. Forson disclosed that about 950,000 Ghanaians moved out of multidimensional poverty between 2024 and 2025, attributing the improvement to stronger economic performance and better living conditions.

He told Parliament that Ghana’s multidimensional poverty rate fell from 24.9% in the third quarter of 2024 to 21.9% during the same period in 2025, reflecting progress in reducing deprivation across critical areas, including education, healthcare, employment and overall living standards.