2026 Mid-Year Budget Review: Mahama inherited an economy on its knees - Finance Minister

Finance Minister Dr Cassiel Ato Forson has described the economic situation inherited by President John Dramani Mahama’s administration in January 2025 as one of the most difficult periods in Ghana’s economic history.

Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, 2026, Dr Forson said the previous administration left behind an economy characterised by high inflation, a sharp depreciation of the cedi, declining investor confidence and rising living costs.

He said inflation had exceeded 50 percent, significantly increasing the cost of basic goods and reducing the purchasing power of millions of Ghanaians.

“The cedi depreciated at levels never seen before, eroding savings, business capital and the purchasing power of millions of Ghanaians. Inflation exceeded 50 per cent, dramatically increasing the cost of living and placing basic necessities beyond the reach of many people,” he said.

Dr Forson added that disposable incomes declined sharply, interest rates surged, and access to credit became increasingly difficult for businesses.

“Investor confidence collapsed. International reserves fell to extremely low levels. International credit rating agencies downgraded Ghana’s sovereign debt to levels never seen in our history,” he stated.

LIVESTREAMING: Finance Minister presents 2026 Mid-Year Budget Review in Parliament

According to the Finance Minister, the economic challenges also affected businesses, with some companies shutting down or relocating, resulting in job losses and increased hardship among households.

He said Ghana’s economic crisis should serve as a reminder of the consequences of fiscal indiscipline, excessive borrowing, weak accountability and poor economic management.

“Mr Speaker, when this administration took office in January 2025, President Mahama inherited an economy on its knees. The economic crisis of 2022 was not merely an accident. This is an honest account of the economy and the one that His Excellency the President inherited,” Dr Forson said.

He stressed that the experience should strengthen Ghana’s commitment to protecting macroeconomic stability and preventing a repeat of similar economic difficulties.

Dr Ato Forson is presenting the 2026 Mid-Year Budget Review to Parliament, a statutory update that provides an assessment of government revenue, expenditure, debt servicing, economic performance and the fiscal outlook for the rest of the year.

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