The Institute of Political Studies (IPS) has called on the Bank of Ghana to maintain a cautious monetary stance, as Ghana’s economic growth is expected to moderate in 2025 despite strong gains recorded in 2024.
In its analysis of the IMF’s October 2025 World Economic Outlook, IPS noted that Ghana’s economy grew by 5.7 per cent in 2024, outperforming both the IMF’s initial forecast of 3.1 per cent and its later projection of 4.0 per cent.
The institute described the performance as “a strong testament to Ghana’s economic resilience and the success of fiscal and monetary stabilisation measures under the IMF-supported programme.”
However, the IMF projects real GDP growth to slow to 4.0 per cent in 2025 before recovering slightly to 4.8 per cent in 2026. IPS cautioned that the slowdown “raises important macroeconomic policy concerns about sustaining growth momentum in the years ahead.”
On inflation, the institute observed a sustained disinflation trend, with headline inflation falling from 23.5 per cent in January to 9.4 per cent in September 2025, marking nine consecutive months of decline.
“This marked the ninth consecutive monthly decline, driven by broad-based easing across both food and non-food components,” IPS stated, attributing the progress to tight monetary policy, fiscal consolidation, and easing global inflationary pressures.
While the Bank of Ghana expects inflation to reach single digits by the end of 2025, the IMF projects a higher figure of 16.6 per cent, suggesting potential inflationary risks toward the end of the year.
IPS, therefore, urged the central bank to avoid premature policy rate cuts, stressing that it should hold the current rate of 21.5 percent “until there is clear evidence that inflation is well-anchored and converging toward the medium-term target of 8 percent (+/-2%).”
“By maintaining monetary discipline and fiscal prudence, Ghana can reinforce the hard-won credibility that underpins investor confidence and transform the current disinflation into enduring stability,” the institute added.
