Ghana’s fight against soaring inflation is showing sustained results as price pressures ease sharply and the local currency posts one of the world’s strongest rallies against the dollar this year, reinforcing investor confidence in West Africa’s second-largest economy.
The Bank of Ghana’s Monetary Policy Committee (MPC) announced Friday in a press release that headline inflation fell to 13.7% in June, the lowest level in more than 18 months, down from 23.8% at the end of 2024. The disinflation trend has held steady for six consecutive months, supported by tighter core inflation measures and anchored expectations, the MPC said following an emergency meeting on Thursday.
The cedi, which has historically been among Africa’s more volatile currencies, has appreciated 42.6% against the greenback year-to-date, buoyed by strong foreign exchange inflows from gold and cocoa exports, resilient remittances, improved investor sentiment and disciplined monetary policy.
According to the press release by the BoG, significant improvements in macroeconomic conditions and the external sector are helping restore confidence in the economy. it also noted that, “Inflation expectations are broadly anchored and external buffers have strengthened.”
The recovery is also being driven by robust growth in the real estate sector. Ghana’s GDP expanded by 5.3% in the first quarter of 2025, with non-oil GDP growing at an even faster pace of 6.8% on the back of strong performances in agriculture and services.
A rebound in external accounts is bolstering foreign reserves. Ghana posted a provisional trade surplus of US$5.6 billion and a current account surplus of US$3.4 billion for the first half of 2025, compared with US$1.4 billion and US$283.1 million respectively a year earlier. Gross international reserves rose to US$11.1 billion by the end of June, covering 4.8 months of imports, up from US$8.9 billion at the end of last year.
However, the central bank cautioned that global headwinds could weigh on the pace of recovery. It expects the global growth momentum to slow to 2.8% this year, from 3.3% in 2024, amid tighter financial conditions worldwide and an uneven path for global disinflation.
The emergency meeting did not result in any immediate policy changes, with the MPC reaffirming its commitment to support the recovery while safeguarding recent gains. The committee’s next regular policy meeting will be held from July 28–30, with an announcement of any new rate decision expected at the conclusion.
