Ghana’s Economy Rebounds: Mahama Government Slashes Deficit, Cuts Debt, and Launches Major Tax Reforms

Ghana’s new Mahama-led administration has delivered its first mid-year budget review, revealing significant economic improvements in the first half of 2025. The government has reduced the fiscal deficit target to 3.8% of GDP, slashed public debt by $9.4 billion, and added $2.14 billion to reserves without external borrowing. Major tax reforms are underway, including the abolition of the COVID-19 levy and a reduction in VAT rates, while no new taxes will be introduced. The cedi has stabilized, inflation is trending downward, and the government plans to invest in infrastructure, including 5,000km of new roads. Despite these gains, Finance Minister Dr. Cassiel Ato Forson cautions that challenges remain, but insists the economy is firmly on the path to recovery.