Minister of Finance, Dr. Cassiel Ato Forson, stated that the current administration inherited an economy “in deep crisis, burdened with severe debt.”
According to him, as of December 31, 2024, Ghana’s economy was in total crisis due to excessive debt accumulation and fiscal challenges, including a large accumulation of NDA arrears, energy sector shortfalls, and financial sector payment issues.
“We inherited an economy in deep crisis, an economy hard hit with debts and beset with fiscal challenges,” he added.
Dr. Forson criticized the previous government for reckless public spending, which, he said, reversed the progress made in fiscal consolidation under the International Monetary Fund (IMF) program initiated in 2023.
Despite the sacrifices of domestic bondholders, external creditors, and taxpayers, the economy remains in distress.
He also noted that inflation worsened in 2024, rising from 23.2% in 2023 to 23.8% in 2024, exceeding both the budget target and the IMF’s central target.
“The 2024 end-period inflation also exceeded the budget target of 15% by 8.8% and the IMF central target of 18% by 5.8%,” he added, stating that this triggered discussions with the IMF under the monetary consultation policy clause.
Furthermore, the primary balance on a commitment basis worsened from a deficit of 0.2% of GDP in 2023 to 3.9% in 2024, a significant deviation from the initial target of a 0.5% surplus.
“At the end of December 2024, the total central government arrears amounted to GH¢67.5 billion, representing 5.2% of GDP, with the road sector alone accounting for GH¢21 billion,” he added.
