Ghana’s Economy on the Rise as Inflation Falls, Reserves Grow

Ghana’s economy is showing signs of renewed stability and investor confidence, according to the Bank of Ghana (BoG), following the release of strong macroeconomic data and improvements in key financial indicators.

The central bank reports that real GDP growth hit 5.3% in the first quarter of 2025, with non-oil GDP growth rising even higher to 6.8%, driven by significant gains in the agriculture and services sectors.

On the external front, the country’s trade surplus reached US$5.6 billion, while the current account surplus climbed to US$3.4 billion in the first half of the year—both more than triple the figures recorded during the same period in 2024.

In addition, Ghana’s gross international reserves rose to US$11.1 billion, offering 4.8 months of import cover, up from US$8.98 billion at the end of last year.

The Ghana cedi has also appreciated by 42.6% year-to-date against the US dollar, buoyed by strong foreign exchange inflows from gold and cocoa exports, remittances, and an uptick in investor confidence.

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These positive developments come on the heels of an emergency Monetary Policy Committee (MPC) meeting held by the BoG on Thursday, July 17, 2025, ahead of its scheduled 125th MPC meeting later this month.

The emergency review focused on recent economic trends and monetary conditions.

In a statement issued Friday, July 18, the BoG highlighted that headline inflation fell for the sixth consecutive month to 13.7% in June 2025, down sharply from 23.8% in December 2024—a clear sign of strong disinflation momentum.

It noted that inflation expectations have now become anchored, and external buffers are strengthening, restoring confidence in the broader economy.

However, the central bank cautioned against global complacency, pointing out that the international economic outlook remains fragile, with global growth expected to slow to 2.8% in 2025, down from 3.3% in 2024, amid sustained financial tightening across major economies.

Source: Liberalprint.com