Dr. Asiama credits non-oil growth, others for Ghana’s economic rebound

BoG Governor credits non-oil growth, banking stability for Ghana’s economic rebound

Bank of Ghana Governor, Dr. Johnson Pandit Asiama, says Ghana’s economic overperformance has been fueled by strong non-oil sector growth and a stable banking system.

Speaking at the 126th Monetary Policy Committee meeting on Monday, Dr. Asiama said real economic activity had firmed, with GDP growth accelerating to 6.3 percent in Q2 2025, led by services and agriculture.

He highlighted that non-oil GDP expanded by an impressive 7.8 percent, underscoring the critical role of diversified economic growth.

The Bank’s Composite Index of Economic Activity rose 6.1 percent year-on-year in July, with improved business and consumer sentiment supporting the outlook.

The Governor pointed to further positive trends in inflation, reporting, “Headline inflation fell to 11.5 percent in August, its lowest since October 2021, driven by tight monetary policy, fiscal consolidation, and better food supplies.”

He noted that core inflation and inflation expectations remain well-anchored, supporting the disinflation process.

Financial sector reforms and capitalization efforts have restored banking stability. Dr. Asiama said

The banking sector is stable and improving, with the capital adequacy ratio rising to 19.5 percent in July.

While non-performing loans remain at 21.7 percent, they fall to 8.4 percent when fully provisioned, reflecting recapitalization and stronger underwriting practices.

On fiscal matters, the deficit was contained at 0.7 percent of GDP in the first half of 2025, below target, aiding a decline in public debt, he added.

Dr. Asiama also celebrated external resilience, noting, “Ghana recorded a trade surplus of US$6.2 billion in the first eight months, underpinned by strong gold and cocoa exports.”

According to him, the cedi has remained one of the world’s strongest-performing currencies, appreciating approximately 21 percent year-to-date due to prudent monetary policy and increased foreign exchange inflows.

The governor’s comments come as the bank’s Monetary Policy Committee reduced the policy rate by 300 basis points in July to 25 percent, signaling confidence in the ongoing recover.