By Patience Amu, Economic Analyst, Accra for sankofaonline
As Ghana prepares for its 2025 Mid-Year Budget Review, the economic data tells a compelling story. A story of deliberate recalibration, disciplined policy execution, and a decisive break from the volatility of the immediate past regime. The Reset Agenda, often critiqued for its cautious start, now stands vindicated by the numbers. It has not only stabilized the economy but has laid the groundwork for sustained, inclusive growth.
The first quarter of 2025 saw real GDP growth at 5.3%, up from 4.9% in Q1 2024. While the headline improvement may seem modest, the sectoral breakdown reveals the true depth of the transformation. Agriculture surged by 6.6%, nearly tripling its growth from 2.4% a year prior. This reflects targeted investments in irrigation, input subsidies, and rural infrastructure under the Reset Agenda. Manufacturing growth also hit 6.6%, a dramatic leap from 1.9% in Q1 2024. This signals a revival of domestic production capacity, import substitution, and value addition—core tenets of the Reset’s industrial policy. These figures contrast sharply with the previous regime’s uneven growth, which was often driven by extractives and lacked sectoral balance. The current trajectory suggests a more diversified and resilient economy.
Perhaps the most striking achievement is the sharp decline in headline inflation, now at 13.7% mid-year, down from 23.8% at the end of 2024. The Producer Price Index has similarly plummeted from 26.1% to 5.9%, indicating that cost pressures on businesses are easing—an essential precursor to job creation and consumer confidence. This disinflationary trend is not accidental. It reflects tighter monetary discipline, improved fiscal coordination, and a credible commitment to macroeconomic stability. Under the previous administration, inflation often spiraled due to unchecked deficits and currency depreciation. The Reset Agenda has reversed that tide.
Ghana’s external accounts have undergone a quiet revolution. The trade surplus has ballooned to $5.6 billion, up from $1.4 billion. The current account surplus now stands at $3.4 billion, a tenfold increase from $283.1 million. Gross international reserves have climbed to $11.1 billion, offering 4.8 months of import cover, up from $8.9 billion and 4 months respectively. These improvements are not merely statistical. They reflect a strategic shift toward export competitiveness, remittance mobilization, and prudent external borrowing. The previous regime’s chronic deficits and dwindling reserves often left the economy vulnerable to external shocks. Today, Ghana is better insulated and more confident on the global stage.
The cedi’s appreciation from GH¢14.70 to GH¢10.45 per US dollar is a powerful symbol of restored investor confidence. It also eases the burden on importers, stabilizes fuel prices, and protects household incomes. Currency stability was elusive under the prior administration, where speculative pressures and policy inconsistency eroded the cedi’s value. The Reset Agenda’s coordinated approach has reversed that trend.
The data from the Bank of Ghana and the Ghana Statistical Service is unequivocal: the Ghanaian economy is not just recovering—it is resurging. The Reset Agenda has delivered where it mattered most: growth, stability, and credibility. Compared to the immediate past regime, which often relied on short-term fixes and external bailouts, the current administration has embraced structural reforms and long-term vision.
As the nation enters the 2025 Mid-Year Budget Review, the challenge will be to consolidate these gains, deepen social investments, and ensure that the benefits of growth reach every Ghanaian. But for now, the record is clear: Ghana is on a sound footing, and the Reset is working.
