Ghana’s economy remained on solid footing in 2024, with stronger-than-expected growth, improving business confidence, and a resilient banking sector, according to the Bank of Ghana’s 122nd Monetary Policy Committee (MPC) meeting report.
The report noted that economic activity in Ghana outperformed projections, with growth momentum sustained across various sectors.
Private sector credit saw a steady increase, edging closer to pre-2022 levels, while the Ghana Stock Exchange (GSE) recorded a strong performance, reflecting renewed investor interest in equities.
Inflation and Price Trends
Globally, inflation continued to decline throughout 2024 as major central banks moved closer to their targets. In Ghana, the disinflation process slowed due to food price pressures, but inflation remained on a downward trend, helping to stabilize price movements.
Cedi’s Performance and Foreign Reserves
The cedi experienced intermittent pressures during the first three quarters of 2024, but managed to regain some value in the final quarter. The report attributed this to a faster-than-expected build-up in international reserves, which provided some stability to the currency.
Banking Sector and Credit Growth
The banking sector remained profitable, well-capitalized, and liquid, with financial institutions continuing to support credit expansion. Private sector lending improved throughout the year, although the pace of growth was still gradual.
Policy Rate Held at 27%
The Monetary Policy Rate (MPR) was maintained at 27%, signaling the central bank’s position on balancing inflation control with economic growth.
The pace of inflation decline, exchange rate movement, and credit expansion will be key indicators to watch in the coming months.
