President Mahama has delivered a bold message of recovery and renewal, declaring that Ghana’s economy has turned a critical corner.
Speaking at the State of the Nation Address, he painted a picture of a country that has moved from the depths of debt distress and inflationary pressure to renewed confidence and stability.
“Our economy has grown significantly,” he told Parliament, adding that Ghana’s GDP is expected to reach 113 billion dollars, up from 83 billion dollars at the end of 2024. The projected growth marks a dramatic expansion in economic output within a short period and signals renewed momentum across sectors.
According to the President, this resurgence has been anchored on fiscal discipline and prudent borrowing. He noted that because the government borrowed less and spent more responsibly, interest rates have fallen, confidence has returned, and private businesses are breathing again.
From Default to Determined Action
The President did not shy away from revisiting one of the darkest chapters in Ghana’s recent economic history. “Mr. Speaker, the 19th of December 2022 will go down as one of the darkest days in Ghana’s economic history,” he said. On that day, Ghana declared its inability to honour its debt obligations and announced a moratorium on both domestic and foreign debt repayments.
He described the debt restructuring process that followed as protracted and complex. “Ghana’s debt became a shackle on our economic progress, dragging our nation down into hardship and despair,” he stated.
He further criticised the structure of the reprofiled debt, saying it appeared that “those who negotiated on our behalf were only intent on kicking the can down the road, with the largest debt repayments scheduled interestingly between 2025 and 2028.”
However, he insisted that his administration confronted the crisis with decisive measures. “Mr. Speaker, we confronted this crisis with action, not rhetoric. We established a sinking fund. We restructured obligations. And we pursued bilateral agreements.”
The outcome, he said, has been historic. Public debt fell by 82.1 billion Ghana cedis, reducing the debt to GDP ratio from 61.8 percent to 45.3 percent. “Mr. Speaker, this is one of the sharpest reductions of debt in Ghana’s history.”
Early Debt Settlement and Global Recognition
In a move that surprised many observers, the President revealed that Ghana settled a 709 million dollar Eurobond ahead of schedule shortly after the New Year celebrations.
“Mr. Speaker, just this year, after the New Year celebration on January 2nd, when people were still recovering from hangovers, we settled a U.S. 709 million euro bond ahead of schedule, completing the U.S. 1.4 billion in debt service that was meant for 2025.”
President Mahama
The move sent strong signals to international markets.
“Mr. Speaker, and the world noticed, Fitch, Moody’s, and Standard & Poor’s all upgraded Ghana’s credit ratings, the first triple upgrade in many years.”
President Mahama
With this, he declared, “Mr. Speaker, Ghana’s credibility is restored. Ghana is rising.”
Inflation Tamed, Households Relieved
Inflation, once the heaviest burden on Ghanaian households, has also seen a dramatic decline. The President recalled that inflation peaked at 54.1 percent at the end of 2022 before declining to 23.5 percent by the end of 2024.
He said the government treated the crisis with urgency through fiscal consolidation, currency stabilisation, and disciplined monetary policy. As a result, inflation fell from 23.5 percent at the end of 2024 to 3.8 percent over 13 consecutive months by January 2026.
Food inflation, which had been the main driver of price increases, fell by 26.6 percentage points. Inflation for locally produced goods dropped by 22.6 percentage points.
“These are not just statistics. These translate into the reality of a parent being able to put food on the table for their children. It translates into the reality of businesses thriving and creating opportunities for Ghana’s young people.”
President Mahama
Fuel Prices Drop and Cedi Gains Strength
Relief has also been felt at the fuel pumps. Petrol prices declined from 15.2 Ghana cedis to 10.7 cedis per litre and recently dipped below 10 cedis to 9.97. Diesel fell from 15.4 to 11.3. The President said this brought relief to 3.7 million car owners and millions of commuters who depend on transport daily.
On the exchange rate front, he addressed a long standing concern for households and businesses. “Mr. Speaker, we did not arrest the dollar. We strengthened the cedi to put up a good fight against the other currencies.”
He reported that the cedi appreciated by 40.7 percent against the US dollar, by 30.9 percent against the British pound, and by 24 percent against the euro.
A Broad Based Turnaround
President Mahama concluded that Ghana’s recovery is comprehensive and broad based.
“Mr. Speaker, Ghana’s economic turnaround is broad-based and comprehensive. All sectors of the Ghanaian economy have witnessed remarkable improvement in our first year in office.”
President Mahama
From debt restructuring and credit rating upgrades to lower inflation and stronger currency performance, the administration’s message is clear. After years of turbulence, Ghana is charting a path defined by fiscal discipline, macroeconomic stability, and renewed investor confidence.
If the trajectory holds, the President’s declaration of an economic comeback may well mark a defining moment in Ghana’s economic history.
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