Ghana's economy will take off after we stabilise it within two years through unrelaxed, tough decisions — Ato Forson

Finance Minister Dr. Cassiel Ato Forson has reiterated the government’s determination to pursue difficult but necessary economic reforms, arguing that the next two years will be critical in consolidating gains made and placing Ghana on a sustainable growth trajectory.

Speaking on the Citi Breakfast Show on Friday, July 24, after presenting the 2026 Mid-Year Budget Review to Parliament, Dr. Forson said the government remains committed to completing its fiscal consolidation programme despite emerging signs of economic recovery.

He described 2025 as an “exceptional year”, explaining that the government’s “shock therapy” approach involved taking bold fiscal decisions to address years of economic difficulties and restore stability.

According to the Finance Minister, the strategy focused largely on controlling expenditure, with primary spending in 2025 reduced to 2023 nominal levels. He said the government’s expenditure adjustment amounted to 5.5% of Gross Domestic Product (GDP), resulting in primary expenditure falling from 18.7% of GDP in 2024 to 13.2% by the end of the 2025 fiscal year.

“The shock therapy worked and the medicine was the shock therapy. We were going to go to the extreme, take the difficult decisions and, as much as possible, consolidate,” Dr. Forson stated.

He stressed that although the measures introduced in 2025 had started producing positive outcomes, maintaining the momentum in 2026 would be essential to ensuring lasting economic stability.

“But let me say, Bernard, 2026 is as equally important as 2025 in the sense that we need to take all the hard decisions within two years and stabilise this economy once and for all so that this country can take off. I’m not relaxing, and the government does not seek to relax. We’ll do what we have to do,” he said.

The Finance Minister’s comments followed his presentation of the 2026 Mid-Year Budget Review, where he highlighted improvements in several economic indicators and outlined what government described as the early impact of its fiscal reforms.

One of the key developments announced was a reduction in multidimensional poverty levels, with Dr. Forson indicating that approximately 950,000 Ghanaians had moved out of multidimensional poverty between 2024 and 2025.

He attributed the improvement to stronger economic performance and better social conditions, noting that Ghana’s multidimensional poverty rate declined from 24.9% in the third quarter of 2024 to 21.9% during the same period in 2025.

The Finance Minister said the reduction reflected progress in addressing deprivation in areas such as education, healthcare, employment opportunities and general living standards.