In his first budget speech before Parliament, newly appointed Finance Minister Cassiel Ato Forson described the current state of Ghana’s economy as critical. He announced higher deficit and debt figures for 2024 than previously expected, particularly in key sectors such as energy and cocoa.

Ghana is struggling with persistently high living costs, the burdens imposed by IMF conditions, as well as mismanagement and challenges in repaying government debt. Forson announced a shock therapy approach involving spending cuts that would require significant sacrifices. However, it remains unclear which sectors will be most affected.

Ghana must repay 8.7 billion dollars over the next four years, equivalent to 10.9 percent of its GDP, according to the finance minister. The bulk of the payments are due in 2027 and 2028. The country’s statistics agency reported that economic growth has slowed, reaching 5.7 percent in 2024. Inflation remains high at 23.1 percent, while the Bank of Ghana aims to reduce it to 8 percent.