Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has reaffirmed confidence in Ghana’s economic recovery, highlighting significant improvements in growth, inflation, and external buffers, even as global conditions remain uncertain.
Delivering the opening remarks at the 126th Monetary Policy Committee (MPC) meetings in Accra, Dr Asiama noted that provisional data for the second quarter of 2025 showed Gross Domestic Product (GDP) growth accelerating to 6.3 per cent, led by strong performance in the services and agriculture sectors.
Non-oil GDP grew even faster at 7.8 per cent, pointing to broad-based economic resilience.
According to the Governor, high-frequency indicators, including the Bank’s Composite Index of Economic Activity, rose by 6.1 per cent year-on-year in July, while the Purchasing Managers’ Index (PMI) and business and consumer surveys reflected improved sentiment across key sectors.
On inflation, Dr Asiama said headline inflation eased further to 11.5 per cent in August 2025, the lowest since October 2021, supported by tight monetary policy, fiscal consolidation, and stable food supplies. He stressed that both core measures and inflation expectations were becoming more firmly anchored.
Turning to Ghana’s external sector, the Governor reported that the country recorded a trade surplus of US$6.2 billion during the first eight months of the year, boosted by robust gold exports and higher cocoa receipts. Gross international reserves also strengthened to US$10.7 billion in August, providing import cover of about four-and-a-half months.
The Ghana cedi, he emphasised, remained one of the strongest-performing currencies globally in 2025, appreciating by about 21 per cent year-to-date as of September 12. The local currency now ranks among the best globally, alongside the Russian ruble, Swedish krona, Norwegian krone, Swiss franc, euro, and the British pound.
“This outperformance reflects prudent monetary policy, effective liquidity management, fiscal consolidation, and increased foreign-exchange inflows,” Dr. Asiama stated.
In the financial sector, the Governor observed continued stability, with the capital adequacy ratio rising to 19.5 per cent in July 2025. Although non-performing loans (NPLs) remain elevated at 21.7 per cent, he explained that they fall significantly to 8.4 per cent when adjusted for fully provisioned losses, underscoring the sector’s resilience amid ongoing recapitalisation and strict credit underwriting.
On fiscal performance, Dr. Asiama disclosed that Ghana achieved a budget deficit of 0.7 per cent of GDP in the first half of 2025, below target. Combined with the strengthening cedi and external debt restructuring, this contributed to a decline in the public debt ratio by mid-year.
He further reminded stakeholders that, against the backdrop of easing inflation and stronger buffers, the MPC in July reduced the monetary policy rate by 300 basis points to 25.0 per cent, while maintaining readiness to adjust policy if risks such as global trade disruptions or utility tariff adjustments threaten disinflation progress.
“The Bank of Ghana remains firmly committed to maintaining price stability, safeguarding financial stability, and creating conditions for inclusive and sustainable growth,” Dr Asiama concluded.
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