Ghana's economic recovery has become a defining national issue as the National Democratic Congress (NDC) government approaches its second anniversary in office. President John Dramani Mahama's administration has prioritized an economic reset, aiming to restore fiscal discipline, strengthen productive sectors, improve infrastructure, and rebuild confidence in the economy. The administration inherited an economy with significant fiscal pressures, high inflation, and debt-sustainability concerns.
The NDC government has sought to reposition the economy through fiscal consolidation, monetary stabilization, agricultural interventions, and renewed investment in infrastructure. Economic indicators show improvements in several areas, but the sustainability of these gains, their distribution across the population, and their impact on employment and household welfare require closer examination. Ghana's real Gross Domestic Product (GDP) growth increased to 6 percent in 2025, compared with 5.8 percent in 2024.
Inflation declined substantially, from 23.8 percent in December 2024 to 5.4 percent in December 2025. The International Monetary Fund (IMF) reported that Ghana's economy grew by 6.4 percent year-on-year in the first quarter of 2026, with inflation standing at 5.3 percent in June 2026. The country's primary fiscal balance recorded a surplus of 2.1 percent of GDP in 2025. These developments suggest an improvement in Ghana's macroeconomic environment.
Fiscal discipline is a central pillar of the government's economic reset agenda. The NDC administration has emphasized expenditure controls, improved revenue mobilization, debt management, and strengthening public financial management. The IMF acknowledged improvements in Ghana's fiscal position and progress in debt restructuring. The 2026 Budget reported a substantial decline in the domestic Treasury bill rate, from approximately 29 percent at the beginning of 2025 to around 10.6 percent by October 2025.
Agriculture occupies a strategic position in Ghana's economic development due to its relationship with food security, employment, rural livelihoods, and industrial growth. The government's Feed Ghana Programme aims to increase domestic food production, reduce dependence on imported food commodities, and strengthen food security. The Agriculture Minister claimed that food inflation declined from 28.3 percent in January 2025 to 2.2 percent in April 2026, partly due to increased domestic food production under the Feed Ghana Programme.
The real measure of fiscal discipline should be a government that spends responsibly, invests strategically, and delivers measurable public value. The challenge ahead is to sustain fiscal consolidation without undermining investment in education, healthcare, agriculture, infrastructure, and social protection. Economic stability is important, but its ultimate value lies in how effectively it supports productive activity and improves people's lives.
As the NDC government approaches its second anniversary, the focus shifts from promises to performance. The administration's economic reset agenda has shown positive results, but a more comprehensive assessment of its impact on employment creation, business expansion, and household welfare is necessary. The government must ensure that public resources are used efficiently, government contracts deliver value for money, revenue leakages are addressed, and development projects are completed within reasonable timelines.
Key points
- The NDC government's economic reset agenda has led to improvements in macroeconomic indicators, including a 6 percent GDP growth in 2025 and a decline in inflation to 5.4 percent.
- The Feed Ghana Programme has contributed to a decline in food inflation from 28.3 percent in January 2025 to 2.2 percent in April 2026.
- Sustaining fiscal consolidation without undermining investment in key sectors will be a challenge for the government.
