Fitch Solutions forecasts Ghana’s budget deficit to narrow to 4.2% of GDP in 2025, driven by fiscal tightening, slowing economic growth to 4.4%
Fitch Solutions, a subsidiary of Fitch Ratings, has projected a significant reduction in Ghana’s budget deficit for 2025, forecasting it to drop to 4.2% of Gross Domestic Product (GDP) from 5.9% in 2024, a 1.7 percentage point improvement year-over-year.
This anticipated reduction stems from tighter fiscal policies, which are also expected to slow economic growth. Fitch Solutions predicts real GDP growth will decelerate to 4.4% in 2025, down from 5.5% in 2024, as the new administration enforces stringent fiscal measures.
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In its statement, Fitch noted, “We maintain all our macroeconomic forecasts for Ghana: we continue to project that real economic growth will decelerate from 5.5% in 2024 to 4.4% in 2025, as the new government pursues fiscal tightening. Accordingly, we project the budget deficit will narrow from 5.9% of GDP in 2024 to 4.2% in 2025.”
Furthermore, the anticipated removal of taxes such as the COVID Levy, E-Levy, 10% tax on betting winnings, and the emissions levy is expected to have minimal fiscal impact. These taxes collectively contribute only 3% to the government’s total revenue.
Fitch Solutions attributes this low impact to the incoming administration’s plans to implement alternative revenue-generating measures. These include reducing tax exemptions and revising taxes on imports and the mining sector, aligning with Ghana’s fiscal consolidation targets under its IMF program.
The combination of fiscal tightening and strategic policy adjustments indicates the government’s commitment to managing its budget deficit while navigating economic challenges.
Source: Accra Street Journal
Last Updated on March 9, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
