Economy stabilizing faster than expected – BoG boss

Governor of the Bank of Ghana, Johnson Pandit Asiama, says Ghana’s economy is stabilising faster than anticipated as inflation declines and economic activity strengthens.

Opening the 129th Monetary Policy Committee meeting in Accra, Dr. Asiama said recent economic data point to a stronger recovery than many analysts had predicted earlier this year.

“In several important respects, the performance of the economy has been stronger than many had anticipated,” he stated, noting that recent figures show clear signs of stabilisation across key sectors.

He explained that headline inflation declined to 3.3 percent in February, marking the fourteenth consecutive monthly drop and placing inflation below the country’s medium-term target band.

“These are numbers that, not long ago, would have been considered aspirational,” Dr. Asiama said, pointing to the sustained downward trend as evidence of improving macroeconomic conditions.

The governor also highlighted stronger external buffers, revealing that Ghana’s gross international reserves have risen to about 14.5 billion dollars, equivalent to 5.8 months of import cover. The figure represents an increase from approximately 13.8 billion dollars recorded during the committee’s previous meeting in January.

According to him, the real economy is also gaining momentum, supported by rising credit to the private sector, higher industrial output, increased trade activity, and stronger household consumption.

Dr. Asiama disclosed that the Composite Index of Economic Activity expanded by 8.4 percent year-on-year at the beginning of 2026, signalling growing confidence in the economy.

“Taken together, these indicators point to an economy stabilising more rapidly than many had expected,” he said.

Despite the encouraging developments, the governor cautioned that the global economic environment has become more uncertain due to geopolitical tensions, particularly the escalation of conflict in the Middle East.

He explained that disruptions to major energy and shipping corridors have increased volatility in global oil markets, posing a risk of imported inflation for countries such as Ghana.

“Sustained oil price increases raise the risk of imported inflation, which could necessitate policy tightening with implications for financial conditions,” Dr. Asiama noted.

He stressed that policymakers must balance the positive domestic trends with emerging global risks as the committee deliberates on its next monetary policy decision.