Ghana's Economy on the Mend: Mid-Year Budget Review Signals Recovery, Tax Reforms, and Fiscal Discipline

Ghana's Finance Minister, Dr. Cassiel Ato Forson, presented the 2025 Mid-Year Budget Review, highlighting significant economic improvements, including a narrowed fiscal deficit target, a reduction in public debt, and stabilization of the cedi. The government announced plans to abolish the COVID-19 levy, reform VAT, and avoid introducing new taxes, aiming to boost domestic confidence and support economic growth. The budget review also outlined ambitious infrastructure projects, such as constructing 5,000km of roads over the next three years. Despite these gains, the Minister cautioned that challenges remain, but expressed optimism about continued recovery. The IMF has endorsed the government's corrective measures, and Ghana's Eurobonds have responded positively to the improved fiscal outlook.