Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has expressed strong confidence in Ghana’s economic rebound, citing improvements in growth, inflation, external reserves, and currency stability despite global uncertainties.
Speaking at the opening of the 126th Monetary Policy Committee (MPC) meetings in Accra, Dr. Asiama said provisional data for the second quarter of 2025 showed GDP growth accelerating to 6.3%, driven by robust services and agriculture. Non-oil GDP expanded even faster at 7.8%, signaling broad-based resilience.
High-frequency indicators also reflected the positive trend: the Bank’s Composite Index of Economic Activity grew 6.1% year-on-year in July, while the PMI and business/consumer surveys pointed to stronger sentiment across sectors.
On prices, he noted that headline inflation fell to 11.5% in August 2025, the lowest since October 2021, aided by tight monetary policy, fiscal discipline, and stable food supplies. Core inflation and expectations, he added, were now more firmly anchored.
Turning to the external sector, Dr. Asiama reported a US$6.2 billion trade surplus in the first eight months of 2025, boosted by gold and cocoa exports. Gross international reserves climbed to US$10.7 billion, providing about 4.5 months of import cover. The cedi, meanwhile, has appreciated by 21% year-to-date as of September 12, ranking among the world’s strongest currencies alongside the ruble, krona, franc, euro, and pound.
“This outperformance reflects prudent monetary policy, effective liquidity management, fiscal consolidation, and increased foreign-exchange inflows,” he said.
In the financial sector, the Governor highlighted continued stability. The capital adequacy ratio improved to 19.5% in July 2025, while non-performing loans (NPLs), though high at 21.7%, dropped sharply to 8.4% when adjusted for fully provisioned losses. He attributed this to recapitalisation efforts and stricter credit underwriting.
On fiscal performance, Ghana posted a 0.7% of GDP budget deficit in the first half of 2025 below target. Combined with a stronger cedi and debt restructuring, this helped lower the public debt ratio by mid-year.
Dr. Asiama reminded stakeholders that, with inflation easing and buffers improving, the MPC cut the policy rate by 300 basis points to 25.0% in July, while remaining vigilant against risks such as global trade disruptions or utility tariff hikes.
“The Bank of Ghana remains committed to maintaining price stability, safeguarding financial stability, and creating the conditions for inclusive and sustainable growth,” he concluded.
