The Minister for Finance, Cassiel Ato Baah Forson, has painted a stark picture of the economic challenges inherited by the administration of President John Dramani Mahama, while highlighting what he described as significant gains made in stabilizing and rebuilding the economy within a short period.
Addressing members of the Ghanaian community in the United Kingdom during a Town Hall Meeting in London, Dr. Forson said Ghana experienced one of the worst economic crises in its history in 2022, resulting in severe hardships for citizens, businesses, and investors.
The engagement formed part of activities surrounding the Ghana-UK Investment Summit and brought together Ghanaians living in the UK to discuss national development, economic recovery efforts, and investment opportunities.
According to the Minister, the scale of the economic crisis that engulfed Ghana in 2022 was unprecedented.
“President Mahama inherited a terrible economy—an economy in difficult times,” Dr. Forson stated.
He recalled that the country faced a combination of macroeconomic challenges, including a rapidly depreciating currency, soaring inflation, dwindling investor confidence, and a loss of access to international capital markets.
“Our currency, the Ghana cedi, came under intense pressure and nearly lost its value. Inflation rose to painful levels, investor confidence deteriorated sharply, and Ghana’s external reserves became severely strained,” he said.
The minister explained that the deteriorating economic conditions triggered a series of sovereign credit rating downgrades by major international agencies.
He noted that in February 2022, Moody’s downgraded Ghana’s sovereign rating. This was followed by further downgrades from S&P Global Ratings and Fitch Ratings, which lowered the country’s creditworthiness to levels never previously recorded in Ghana’s history.
The downgrades, he said, effectively shut Ghana out of the international capital market and worsened the nation’s financial difficulties.
Dr. Forson revealed that the country’s Eurobond spreads surged to record levels of over 3,400 basis points, making external borrowing virtually impossible.
He added that the economic crisis affected key institutions, including the Ghana Cocoa Board, which for the first time in more than three decades struggled to secure its annual syndicated loan.
Commercial banks were also impacted, with several local institutions reportedly unable to access external funding or establish letters of credit because international banks had lost confidence in the country’s financial outlook.
Despite the bleak picture inherited by the Mahama administration, the Finance Minister said the government had undertaken difficult but necessary reforms to restore economic stability.
“President Mahama took difficult decisions—some extremely bitter—but in the end, we all recognize that prudence works,” he told the audience.
Dr. Forson announced that the economy has begun showing strong signs of recovery, citing robust growth figures and improvements across key economic indicators.
According to him, Ghana recorded a Gross Domestic Product (GDP) growth rate of 6 percent in 2025, while non-oil GDP growth reached 7.6 percent—the highest recorded in 14 years.
He further disclosed that Ghana’s economy has, for the first time, surpassed the $100 billion GDP threshold, elevating the country’s status among Africa’s emerging economies.
“Today, Ghana’s economy is ranked as the eighth-largest economy on the African continent,” he stated.
The Finance Minister also highlighted progress in debt management, describing the country’s debt outlook as significantly improved.
He explained that Ghana has moved from an unsustainable debt position to a moderate risk of debt distress, with the debt-to-GDP ratio declining to 44.7 percent.
According to him, this achievement surpassed targets agreed under the country’s programme with the International Monetary Fund.
“The IMF projected that Ghana would attain a debt-to-GDP ratio of 45 percent by 2034. We have achieved that target in just one year,” he said.
Dr. Forson further revealed that inflation has fallen sharply, dropping from 23.8 percent in December 2024 to 3.4 percent in April 2026, a development he attributed to disciplined fiscal management and coordinated economic policies.
He assured members of the diaspora that the government remains committed to sustaining economic stability, creating jobs, attracting investment, and positioning Ghana as a competitive destination for business and innovation.
The Finance Minister urged Ghanaians abroad to remain confident in the future and to actively participate in Ghana’s development agenda through investment, skills transfer, and strategic partnerships.
His remarks were met with keen interest from participants, many of whom welcomed the government’s efforts to stabilize the economy and create a stronger foundation for long-term growth and prosperity.
By 1960news.com
