Today, Parliament will be the focus as Finance Minister Dr. Cassiel Ato Forson delivers the highly anticipated 2025 Mid-Year Budget Review.
Many observers are wondering whether the government would stick to its original spending plan or request a supplementary budget to address budgetary and political challenges.
TThe review occurs during a period when Ghana’s macroeconomic indicators are showing significant improvement, which raises hopes for a policy path that strengthens fiscal consolidation, investor confidence, and price stability.
Inflation, which started the year at 23.5 percent, fell dramatically to 13.7 percent by the end of June 2025. TThis favourable disinflation trend has raised hopes among analysts that Ghana will conclude the year with single-digit inflation, significantly ahead of the government’s original end-of-year target of 11.9%.
TThe volatility of the cedi was one of the most pressing concerns for both businesses and households when President Mahama began his second term. TThe local currency, which traded at roughly GH¢15 to the US dollar on the interbank market in January, is currently exchanging for approximately GH¢10.45, indicating a significant appreciation.
This rebound has begun to be reflected in marginal pricing adjustments in certain retail locations, while manufacturers continue to monitor the cedi’s stability within a 60-day window set by major business associations.
Meanwhile, many have hailed the abolition of the betting tax as a source of money. However, the new GH¢1 fuel fee, implemented earlier this month has received some public criticism. Many industry watchers are waiting to see if today’s review will include a sunset provision or a deadline for its removal.
In terms of economic growth, the government previously forecast a 4.4 percent GDP growth rate in 2025. However, numbers from the Ghana Statistical Service show a stronger-than-expected 5.3 percent growth in the first quarter alone, clearing the path for an upward revision to today’s budget forecast.
On the monetary front, Ghana’s gross international reserves have increased to US$11.1 billion, sufficient to cover 4.8 months of imports, up from the initial objective of only three months. This marks a huge increase over the US$8.98 billion recorded at the end of 2024.
The cedi’s excellent performance — up 42.6 percent year to date against the US dollar — has been ascribed to increased inflows from gold and cocoa exports, remittances, and regained investor confidence.
For many economists, the message to the government is clear: while the data are encouraging, budgetary discipline must be maintained, especially as key infrastructure projects take shape in the second half of the year.
As the Finance Minister takes the floor, stakeholders from all sectors — from investors and manufacturers to civil society and international partners — will be looking for signs of discipline, policy credibility, and long-term economic direction.
