Ghana’s economy would have crashed in 2026 without tough decisions – Ato Forson

Ghana's Finance Minister, Dr Cassiel Ato Forson, asserts that the country's economy would have collapsed by 2026 if the government had not implemented stringent decisions to curb spending and enhance fiscal discipline. In an interview post the unveiling of the 2027 Budget, Dr Forson defended the fiscal policies the administration adopted since taking office in 2025.

He recounted the administration's arrival in 2025, facing persistent inflation and an ongoing economic crisis. If the status quo were maintained, the economy faced imminent collapse by 2026, according to Dr Forson. The government, therefore, tightened fiscal policy and addressed the chaos in public financial management. He highlighted currency stabilization and the attainment of primary surpluses as proof of the success, citing a primary surplus of 2.5% of GDP in 2025 and 1.5% in 2026.

Dr Forson aims to lower the primary surplus target to 0.5% of GDP to sustain the economic program. He emphasized that restoring stability is merely the first step, as the government must now also transform the economy to create lasting employment. With a population of 35 million, Ghana's existing economic framework falls short of meeting the needs of its expanding populace.

He argued that temporary employment programs are insufficient substitutes for the structural reforms necessary to generate meaningful jobs. Dr Forson elaborated that the New Economy policy would focus on modernizing production and augmenting the economy's workforce absorption capacity. This program is a four-year initiative to transition beyond macroeconomic stabilization while maintaining the discipline that ensured its attainment.