The Bank of Ghana has projected a firm economic rebound as it opened the 127th Monetary Policy Committee (MPC) meetings, with Governor Dr. Johnson Pan
The Bank of Ghana has projected a firm economic rebound as it opened the 127th Monetary Policy Committee (MPC) meetings, with Governor Dr. Johnson Pandit Asiama delivering one of the most optimistic assessments of Ghana’s economy in recent years.
His remarks, grounded in fresh data presented by the central bank’s staff, paint a sharp contrast to the economic distress the country faced just a year ago, when high inflation, weak reserves, currency volatility, and sluggish growth dominated the outlook.
Speaking at the opening session, Dr. Asiama noted that Ghana has “turned a decisive corner,” attributing the current stability to disciplined fiscal management, reforms in the foreign exchange market, and a consistent monetary policy stance. Inflation, which had soared into double digits and pushed household costs to unbearable levels last year, has now eased back into the target band, reaching 8.0 percent. Core inflation indicators are also stable, ranging between 5 and 7 percent.
The Ghanaian cedi, which previously experienced steep depreciation spells, has shown resilience throughout 2025, buoyed by improved investor confidence, FX market reforms, and sustained inflows from trade and reserves.
Historical data shows that the external buffers had dipped dangerously low during 2023–2024, prompting market anxiety and downgrades from international credit watchers.
Today, however, the central bank reports gross international reserves at US$11.41 billion, representing 4.8 months of import cover with projections to reach five months by year-end. This sharp turnaround, according to the governor, provides a solid foundation for stable exchange rate management.
Dr. Asiama further highlighted the renewed momentum in domestic economic activity.
After suffering from a prolonged downturn and a widening negative output gap, the real sector is witnessing a sustained revival.
First-half GDP growth reached 6.3 percent, driven largely by strong performances in services and agriculture.
The non-oil economy grew even faster, recording 7.8 percent—a key indicator of resilience beyond extractive industries. High-frequency data, particularly the Composite Index of Economic Activity, shows an uptick of about 9 percent, reflecting stronger business confidence and improved consumer sentiments.
The Governor was emphatic that the ongoing recovery is not coincidental but the result of deliberate structural reforms and strict policy coordination between fiscal and monetary authorities.
The upcoming 2026 Budget, he noted, reinforces this discipline by placing growth and job creation at the heart of the medium-term economic transformation agenda.
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