By Francis Ntow
Accra, July 24, GNA – Finance Minister Dr Cassiel Ato Baah Forson will today present the 2025 mid-year budget review to Parliament, assessing the economy’s performance for the first half of the year.
The presentation, a constitutional duty under Section 28 of the Public Financial Management Act, 2016 (Act 921), comes amid heightened public and business expectations for measures to sustain recent macroeconomic stability.
The review will provide updates on revenue mobilisation, expenditure trends, debt management, progress of key government initiatives, and the economic outlook for the remainder of 2025.
It will also cover the implementation status of the ongoing US$3 billion International Monetary Fund (IMF) programme, which has so far disbursed US$2.4 billion in support of Ghana’s economic recovery efforts.
The government has recorded some positive economic indicators this year, including a decline in inflation from 23.5 per cent in January to 13.7 per cent in May, a stabilising Cedi, and a 5.3 per cent GDP growth in the first quarter.
However, stakeholders have called for continued policy consistency to support business planning, investment expansion, and job creation.
Commenting on the current trends, Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, acknowledged signs of stabilisation but cautioned that “significant risk to the country’s macroeconomic conditions” remain, urging “prudent collaborative efforts to mitigate the risks.”
On inflation, Dr Asiama identified constraints on food supply—particularly from northern Ghana and the Sahel—and global commodity price shocks as key vulnerabilities.
He also cited geopolitical tensions and shifting global trade dynamics, including recent US-led tariff disputes, as threats to financial flows, exchange rates, and commodity markets in emerging economies such as Ghana.
Chief Executive Officer of the Ghana Association of Banks, Mr John Awuah, described recent economic indicators as “encouraging,” noting that stability should be maintained over the next six to 12 months.
“The signals are encouraging. We believe the economy is ripe for a reduction in the policy rate by at least 200 basis points, which will translate into more competitive lending rates across the commercial banking sector,” he said.
Dr Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), told the Ghana News Agency that macroeconomic stability would enhance business recovery and reduce prices for consumers.
He urged a review of the Value Added Tax (VAT) regime and port charges, along with policies to limit profit repatriation, to support a more business-friendly environment.
Mr Seth Twum-Akwaboah, CEO of the Association of Ghana Industries (AGI), also echoed the same sentiments.
“It’s important for the environment to be conducive by stabilising the macroeconomy, so that when you invest, you get good returns, and be able to expand.”
The IMF, in its fourth review of Ghana’s Extended Credit Facility programme, commended the government’s alignment of reforms with the 24-hour economy and “Big Push” infrastructure agenda.
However, it warned that growth may slow due to fiscal contraction, tighter monetary policy, and external pressures.
The IMF called on the government to safeguard the fiscal consolidation path under the programme to fully restore macroeconomic stability and debt sustainability, while protecting vulnerable populations.
GNA
Edited by Kenneth Sackey