News:
July 15, 2025
Ghana’s economy is thriving and on path of growth which would eventually lead to a sustainable growth and development according to data and statistics available to the Monetary Policy Committee of the Bank of Ghana.
Inflation in January 2025 at 23.4 percent now stands at 18.3 as at May this year and has been programmed to hit at mid-teens by the middle of the year.
Chairman of the Economy and Development Committee Dr. Erick Afful in a statement on the floor of the House noted that according to a report on the domestic front, the banks high frequency real sector indicators point to a sustainable pick-up in economic activities.
Composite index of economic activities increase by 2.3 percent on year in March this year compared to 1.0 percent over the same period last year. In addition the purchasing manager’s index rose above the 50-bench mark as output and now orders increased signaling improved growth and prospect.
According the BoG Monetary Policy Committee 124th report, which indicates that based on the inflationary pressures and options above the macro-economic conditions, the latest confidence surveys show significant improvement in the business and consumer indices, the highest in the last seven years.
Again, headline inflation has declined consecutively within the year according to the BoG by 2.6% percentage point to 21.2% in April 2025 and 18.3% in May 2025, resulting in the reduction of the prices of goods and services in the country.
The primary fiscal balance has also improved significantly in the first quarter of 2025 and according the reports, at the end of March 2025, the stock of public debt stood at GH₵ 769.4 b, representing 55% of GDP compared with GH₵ 726.7 b, also representing 61.8% of GDP at the end of December 2024.
“Right Hon. Speaker, according to the BoG’s current report, the external sector has continued to improve. Mr. Speaker the provisional current accounts earned a surplus of 2.1 billion US$ at the end of the first quarter of 2025, mainly driven by the higher prices and production volumes of Gold and Cocoa and strong remittance inflows. Speaker, the overall balance of payment registered is a surplus of 1.1 billion US$ in the first quarter of 2025 with a significant reserve accumulation.
And the strong external performance resulted in a significant reserve accumulation according to the report. The Gross International Reserve amounted to $ 10.7 billion dollars in April 2025, equivalent to 4.7 months of import cover of goods and services”.
Mr. Speaker, the Gross International Reserve has been programmed to hit 4.0 months of import cover at the end of 2025 according to the 2025 budget statement and economic policy, this shows that broadly, the external sector outlook remains favorable, largely anchored on expectations of increased gold and cocoa receipts as well as inflows from remittances, he stated.
Kwaku Sakyi-Danso/Ghanamps.com