Ghana’s monetary policy shows mixed trends, but interest rates decreasing – World Bank

Ghana’s monetary policy has shown mixed trends, with interest rates decreasing and private sector credit growth rebounding. The World Bank has revealed in its 2024 Country Policy and Institutional Assessment (CPIA) 2024.

Similarly, the non-performing loan ratio has risen.

The report indicated that the Ghanaian economy demonstrated resilience, with strong growth in real gross domestic product driven by the performance in mining.

It, however, called for the enforcement of monetary financing limits for the budget, aimed at combating high inflation caused by excess fiscal financing in the past.

It also called for continued efforts needed to stabilise the economy and enhance transparency in fiscal management.

“Ghana has progressed with tax reforms, raising the VAT [Value Added Tax] rate and introducing a high-income tax bracket. The Medium-Term Revenue Strategy aims to boost revenue collection, but issues like complex corporate tax structures and inefficiencies need to be addressed for better revenue generation”, it added.

Ghana’s CPIA score of 3.4 was higher than the Sub-Saharan Africa average. It was also above the West and Central Africa average.

Its highest score of 3.7 was in the area of Social Inclusion and Equity and the lowest score of 2.8 was in Economic Management.

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