Mahama Government Achieves Rapid Economic Turnaround

  



Ghana has achieved a major economic milestone under the Mahama administration, meeting the ECOWAS convergence criteria for the adoption of a single regional currency—the Eco—within just nine months of taking office in January 2025.
The achievement, though not widely publicised, stands out as one of the strongest indicators of the Mahama government’s rapid and disciplined economic recovery efforts. As of the third quarter of 2025, Ghana had satisfied all the key primary criteria required for joining the proposed ECOWAS single currency, placing the country ahead of all 15 other member states.
Inflation Falls Dramatically
One of the major criteria is maintaining an average annual inflation rate below 10%. Ghana has achieved this with remarkable speed. After inheriting inflation at 23% from the previous Akufo-Addo administration, the Mahama government managed to reduce it to 8%, marking one of the steepest disinflation successes in the region.
Fiscal Discipline Restored
Ghana also met the ECOWAS fiscal deficit benchmark of less than or equal to 3% of GDP, posting a deficit of 2.8% in the third quarter of 2025. In addition, the country’s gross external reserves now cover 4.8 months of imports, significantly higher than the ECOWAS minimum of three months.
Another critical requirement—that central bank financing of the government’s budget must not exceed 10% of the previous year's revenue—has been exceeded as well. Ghana recorded zero central bank financing in 2025, reflecting strict adherence to fiscal discipline.
Debt Reduced Ahead of Schedule
The government also made major gains on public debt. ECOWAS requires member states to maintain public debt below 70% of GDP. By June 2025, Ghana had lowered its debt-to-GDP ratio to 43.8%, far below the benchmark and well ahead of earlier expectations. This improvement even precedes IMF projections that Ghana’s debt ratio would end the year at approximately 59–60%.
Best Macro Position in West Africa
With these achievements, Ghana emerges as the only ECOWAS member state to have satisfied virtually all the primary macroeconomic convergence indicators required for the Eco. This is a dramatic turnaround from January 2025, when all major economic indicators were in distress and global credit rating agencies had downgraded Ghana to junk status.
Credit Ratings Upgraded

Ghana’s rapid recovery has attracted renewed international confidence. All major credit rating agencies have upgraded the country’s outlook:
Fitch: B– (stable) – June 2025
S&P Global: B– (stable) – November 2025
Moody’s: Upgraded to Caa1 (stable)
These upgrades highlight Ghana’s restored fiscal discipline and resilience after a successful debt restructuring.
Cedi Strengthens Significantly
The Ghanaian cedi has also demonstrated sustained strength. After trading at nearly GH¢17 to the US dollar in December 2024, the currency has appreciated to GH¢10.8 per dollar, reflecting improved investor confidence and a more stable macroeconomic environment.
Ghana’s impressive macroeconomic turnaround not only sets the stage for participation in the ECOWAS single currency project but also signals a renewed era of fiscal credibility, regional leadership, and economic stability under the Mahama administration.

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