Ghana Hits 44.7% Debt-to-GDP, Exits IMF Bailout 9 Years Ahead of PFM Deadline- Finance Minister
Ghana has completed the final review of its IMF Extended Credit Facility and exited financial bailout dependence, with public debt falling to 44.7% of GDP at end-2025 — nine years ahead of the 45% target set in the Public Financial Management Act for 2034.
Finance Minister Dr Cassiel Ato Forson announced the milestone in Parliament, calling it the pivot from “crisis management to stability, from dependence on financial bailout to partnership in reform.”
He said the exit marks a decisive step in President Mahama’s Reset Agenda.
“The numbers underline the turnaround. After the 2022 meltdown when inflation topped 50%, the cedi collapsed, Eurobond spreads hit 3,400 basis points, and Ghana defaulted on both domestic and external debt, the debt-to-GDP ratio has now dropped from 61.8% in 2024 to 44.7% in 2025. Debt service relative to revenue also halved from 55.7% in 2022 to 28.8% in 2025, even as full Eurobond payments resumed.”
Dr Forson credited the recovery to recalibrated IMF programme measures: commitment, authorisation to control spending, audits to eliminate recycled arrears, closure of loopholes in the tax refund account, and PFM amendments that lock in a 1.5% primary surplus.
He reported that the government also set up GOLDBOD for forex stability, operationalised the Sinking Fund, created an Office of Value for Money and an Independent Fiscal Council.
He added that the government cut nuisance taxes, including the E-Levy and Betting Tax, renegotiated IPPs to save US$250 million, cleared US$1 billion in energy arrears, and reduced the size of government from 123 ministers to 60.
According to him, the fiscal repair fed into broader growth as Real GDP expanded 6.0% in 2025, the fastest post-pandemic, while non-oil GDP grew 7.6%, the highest in 14 years. And Ghana crossed the US$100 billion economy threshold for the first time, with per capita income rising to US$3,385 to become Africa’s 8th largest economy.
He indicated that inflation cooled from 23.8% in December 2024 to 3.4% in April 2026, the 91-day T-bill rate fell 2,300 basis points to 4.8%, and the cedi appreciated 40.7% against the dollar in 2025.
As a result of these developments, Dr Forson said no further IMF financial bailout will be needed as Ghana’s future engagement will be a non-financing Policy Coordination Instrument for policy credibility.
Quoting President Mahama, he said this should be “the very last time we will ever go for a bailout from the IMF.”
Using the President’s words, he added: “We have moved from the intensive-care unit to the wellness centre.”
He noted that the next phase is “The New Economy,” a transformation programme to be unveiled in the 2027 Budget targeting jobs, productivity and resilience.
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