BoG Governor highlights strong economic recovery, cedi resurgence

Ghana’s economy is showing robust signs of recovery despite continuing global uncertainties, with inflation falling to its lowest level since 2021, Bank of Ghana Governor Dr. Johnson Pandit Asiama has announced.

Addressing the 126th Monetary Policy Committee meeting on Monday, 15th September, 2025, Dr. Asiama said, “Real activity has firmed, with provisional data showing GDP growth accelerated to 6.3 percent in Q2 2025, led by services and agriculture.”

He noted that non-oil GDP expanded by 7.8 percent, supported by improved business and consumer sentiment and a 6.1 percent rise in the Bank’s Composite Index of Economic Activity year-on-year in July.

On inflation, the Governor stated, “Headline inflation fell further to 11.5 percent in August, its lowest since October 2021.” This decline was underpinned by a tight monetary stance, fiscal consolidation, and improved food supplies.

Core inflation measures and inflation expectations have also stabilized, anchoring the disinflation process, he said.

External economic buffers have strengthened significantly. Dr. Asiama reported, “For the first eight months, Ghana recorded a trade surplus of US$6.2 billion, underpinned by robust gold exports and higher cocoa receipts.

Gross international reserves stood at US$10.7 billion in August, covering approximately four and a half months of imports.

The Governor emphasized the currency’s strong performance: “The cedi remains among the strongest currencies globally year-to-date, appreciating about 21 percent.”

He explained, “Despite seasonal pressures and a recent moderation in remittances, the cedi’s outperformance reflects prudent monetary policy, effective liquidity management, fiscal consolidation, and increased foreign-exchange inflows.”

According to him, the cedi now ranks alongside high performers such as the Russian ruble, Swedish krona, Swiss franc, Euro, and British pound.

Regarding the financial sector, Dr. Asiama assured stability, saying, “The banking sector remains stable, with the capital adequacy ratio rising to 19.5 percent in July.”

Though non-performing loans remain elevated at 21.7 percent, they reduce to 8.4 percent when fully provisioned, underscoring ongoing resilience.

On fiscal matters, he highlighted that the deficit was contained at 0.7 percent of GDP in the first half of 2025, below target, contributing to a decline in the public debt ratio.”

The Monetary Policy Committee implemented a 300 basis point cut to 25.0 percent in July, reflecting easing inflation pressures.

“Our commitment remains firm: maintain price stability, safeguard financial stability, and create conditions for inclusive, sustainable growth,” the governor stressed.