Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), forecasts inflation will range between 4 and 6 per cent before the end of 2025. Speaking at the 127th Monetary Policy Committee (MPC) meeting on November 24, he highlighted the quarter’s strong and diversified economic activity.
Ghana’s economy grew by 6.3 per cent in the first half of the year, fueled by robust service and agricultural sectors. Non-oil GDP jumped 7.8 per cent, supported by positive indicators such as a 9 per cent rise in the Composite Index of Economic Activity and upbeat business and consumer confidence. These gains signal a shrinking output gap and a gradual shift from recovery to expansion.
Dr. Asiama attributes this progress to sustained fiscal discipline, prudent monetary policy, and structural reforms—particularly improvements in foreign exchange operations and rebuilding external reserves. The upcoming 2026 budget continues to emphasize fiscal discipline, growth, and job creation as central to Ghana’s economic transformation.
Looking ahead, growth prospects remain positive. Factors like a strong harvest, improved food supply, better FX liquidity, and easier credit conditions will sustain expansion. The services, industry, and agriculture sectors are expected to drive continued growth.
Monetary conditions also support this outlook. With moderated money supply growth helping to anchor inflation and real interest rates still high, a cautious easing of policy is possible. Inflation is expected to stabilize around the 4–6 per cent range by year-end, settling within the target band through 2026, potentially ushering in multi-year price stability.
Nevertheless, Dr. Asiama warned of ongoing risks from global uncertainties, commodity price volatility, geopolitical tensions, and tighter external financial conditions. Domestically, tax pressures, utility costs, and credit expenses still challenge businesses despite growing optimism.
Story by: Mercy Addai Turkson #ahotoronline.com