‘The economy has turned a decisive corner’ – BoG Governor 

Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has said Ghana’s economy has significantly strengthened over the past year.

He cites faster-than-expected disinflation, a stable exchange rate, rising reserves, and renewed momentum in the real sector as key indicators of the turnaround.

Speaking at the opening of the 127th Monetary Policy Committee (MPC) meetings, Dr. Asiama said the latest data presented to the Committee reflects “the strongest initial conditions we have had in several years,” signalling a clear shift from recovery to sustained expansion.

According to him, headline inflation has dropped to 8.0 percent, with core inflation between 5 and 7 percent, while expectations remain firmly anchored. He noted that the cedi has shown remarkable stability throughout 2025, supported by improved market confidence, reforms in foreign exchange operations, and robust reserve inflows.

The Governor announced that Ghana’s gross international reserves have increased to US$11.41 billion, equivalent to 4.8 months of import cover, and are projected to reach five months by the end of the year.

Dr. Asiama highlighted broad improvements in real-sector performance, pointing to 6.3 percent GDP growth in the first half of the year, driven by strong activity in services and agriculture. Non-oil GDP grew by 7.8 percent, while the Composite Index of Economic Activity expanded by about 9 percent, reflecting rising business and consumer confidence.

He attributed the economic turnaround to sustained fiscal discipline, prudent monetary policy, structural reforms, and strengthened foreign exchange operations. He added that the 2026 Budget reinforces stability by placing growth and job creation at the centre of Ghana’s next economic phase.

Looking ahead, Dr. Asiama said the outlook remains positive, with growth expected to continue through 2026, supported by better food supply dynamics, improved FX liquidity, and a gradually easing credit environment. He also noted that money supply growth has moderated, helping anchor inflation toward a projected 4–6 percent range by year-end.

Despite the progress, he cautioned that global uncertainties, commodity price swings, and domestic pressures from taxes, utilities and credit costs pose risks that require vigilance.

For the MPC’s deliberations, he outlined three priority areas:

1.The pace of disinflation and appropriate real interest rate adjustments.

2.Continued reforms in FX market operations and reserve management.

3.Ensuring financial sector stability and improving credit transmission.

Dr. Asiama urged the Committee to protect the gains made while supporting the real sector’s recovery. “Our decisions today must reinforce confidence, signal predictability, and keep the economy on its path toward higher, job-rich growth,” he concluded.