World Bank Hails Cedi Stability as Debt Deals and Fiscal Discipline Spur Ghana’s Recovery

Ghana’s currency is enjoying a strong rebound in 2025, with the World Bank crediting strict fiscal discipline and progress on debt restructuring as the main drivers of stability.

In its 9th Ghana Economic Update, the Bank noted that the cedi’s performance reflects improving economic fundamentals. Inflation, which hovered above 20 percent through much of 2024, has been on a steady decline this year. By July 2025, headline inflation had dropped to 12.1 percent, the lowest in nearly four years, after seven straight months of decline.

The report highlights government efforts to rein in spending and enforce new fiscal rules in the first half of the year as crucial signals of renewed discipline. Debt restructuring has also eased pressure. Following the completion of the Eurobond exchange late last year and a memorandum of understanding with official creditors in January, Ghana is gradually edging toward sustainable debt levels.

On July 25, Ghana sealed a bilateral deal with France as part of its external debt restructuring programme, further boosting market confidence. While talks with commercial creditors are still ongoing, the Bank describes the outlook as positive.

External trade has added to the momentum. Higher gold exports, stronger remittance inflows, and rising foreign direct investment have lifted the current account into surplus, helping rebuild reserves.

Despite the progress, the World Bank warns of challenges ahead. It projects GDP growth will slow to 3.9 percent in 2025 due to tighter fiscal measures but expects growth to rebound to 5 percent by 2028, supported by private spending, remittances, and new oil output.

The Bank cautioned that long-term gains depend on consistent revenue mobilisation, firm expenditure controls, and deep reforms in key state-owned enterprises such as COCOBOD and the Electricity Company of Ghana (ECG).