Ghana’s recovery on track despite global uncertainties, says BoG

The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, says the country’s economic recovery is gathering pace, supported by strong growth, falling inflation, and improved external buffers, even as global conditions remain uncertain.

Delivering opening remarks at the 126th Monetary Policy Committee (MPC) meeting in Accra on Monday, Dr Asiama reported that Ghana’s GDP grew by 6.3 per cent in the second quarter of 2025, driven by services and agriculture, while non-oil GDP expanded by 7.8 per cent.

He noted that high-frequency indicators, including the Bank’s Composite Index of Economic Activity, which rose 6.1 per cent year-on-year in July, point to sustained momentum.

On inflation, he said headline consumer prices dropped to 11.5 per cent in August—the lowest level since October 2021—reflecting tighter monetary policy, fiscal consolidation, and improved food supplies. “Core measures and expectations continue to re-anchor,” he added, suggesting stability in price trends.

Dr Asiama highlighted Ghana’s stronger external position, with a trade surplus of US$6.2 billion in the first eight months of 2025, supported by gold and cocoa exports. Gross international reserves rose to US$10.7 billion in August, covering about 4.5 months of imports. The Ghanaian cedi, he said, has appreciated by about 21 per cent so far this year, ranking among the strongest-performing currencies globally.

The central bank chief also pointed to resilience in the banking sector, with the capital adequacy ratio climbing to 19.5 per cent in July. Although non-performing loans remain elevated at 21.7 per cent, they decline to 8.4 per cent when provisioned losses are accounted for.

On the fiscal front, Dr Asiama noted that Ghana’s budget deficit on a commitment basis was contained at 0.7 per cent of GDP in the first half of 2025, below target, helping to reduce the public debt ratio by mid-year.

Against this backdrop, the MPC in July cut the policy rate by 300 basis points to 25 per cent while maintaining readiness to act if risks from global trade disruptions or potential utility tariff adjustments emerge.

“Our commitment remains firm: to maintain price stability, safeguard financial stability, and create the conditions for inclusive, sustainable growth,” Dr Asiama assured.