PricewaterhouseCoopers commends Ghana’s fiscal reforms
By Praisebell Rosemond Larbi
Global accounting and advisory firm PricewaterhouseCoopers (PwC) has endorsed Ghana’s economic recovery in the first half of 2025, noting that the country’s economic resilience stands out despite persistent global trade frictions and geopolitical tensions.
In its latest 2025 Mid-Year Budget Digest, PwC described Ghana’s performance as “notable and credible” and added that the effects of macroeconomic stability are beginning to manifest tangibly for businesses and households.
The firm’s commentary follows the presentation of the Mid-Year Budget Review to Parliament by Finance Minister Dr. Cassiel Ato Baah Forson, who highlighted strong fiscal metrics, improved investor confidence, and easing inflationary pressures as key indicators of a stabilizing economy.
“Our overall view is: so far, so good. Sustained improvement, however, depends on discipline, vision, and a true commitment to principles of public accountability. We concur with the Minister that the data reveals a significant short-term recovery,” it stated.
PwC cited improvements in fiscal and monetary discipline, particularly the achievement of a primary surplus, currency appreciation, and debt reduction as worthy of commendation. The firm also noted that some formal retail outlets had begun reducing prices in response to falling inflation, though many informal market traders remain hesitant to follow suit.
Despite considerable external headwinds, including global trade realignments driven by evolving U.S. foreign policy and instability in the Middle East, Ghana’s economy appears to be finding its footing.
Highlights from the Mid-Year Budget
Ghana’s economy expanded by 5.3 percent in the first quarter of 2025, with non-oil GDP growth reaching 6.8 percent, signaling momentum in sectors not traditionally reliant on commodity exports. The agricultural sector, in particular, grew by 6.6 percent year-over-year, buoyed by enhanced food supply chains and higher farm productivity.
Inflation declined from 23.8 percent in December 2024 to 13.7 percent by mid-2025, marking one of the most significant disinflationary periods in recent years. This was reflected in Treasury bill yields, which dropped by as much as 14 percentage points. Average lending rates declined to 27 percent, slightly improving access to credit for businesses and consumers.
The Ghana cedi also recorded a robust appreciation against major foreign currencies, most notably a 40.7 percent gain against the US dollar in the first seven months of the year, thanks to improved external sector performance and growing investor confidence.
Government savings from reduced domestic debt interest payments amounted to GHS4.9 billion, driven by improved debt management strategies. Gross international reserves climbed to USD11.12 billion, offering 4.8 months of import cover, up from 3.2 months the previous year.
Finance Minister Dr. Forson credited the strong macroeconomic performance to a combination of fiscal consolidation, monetary tightening, exchange rate stability, and reforms under the IMF-supported Post-COVID Program for Economic Growth (PC-PEG).
Looking Ahead
PwC warned that the gains could easily reverse without sustained reforms and prudent economic management.
“Ghana must double down on structural reforms and remain vigilant in managing vulnerabilities tied to external shocks,” the digest added.
