Ghana’s economy is entering the final stretch of 2025 with a noticeable loss of momentum, as Bank of Ghana numbers point to a system increasingly starved of cash. The data reveals that liquidity is draining out of the economy, and the slowdown is beginning to show in spending patterns, business activity, and overall market energy.
The clearest signal is the sudden drop in money supply growth. The broad measure of liquidity, M2+, which had been expanding at 16.6% in August, slowed to 13.7% in September and then slumped to just 8.2% in October 2025. That decline alone suggests that less money is circulating through households, shops, banks, and businesses.
But the sharper warning comes from narrow money (M1), the cash people actually use for daily spending. After growing by a hot 27.5% in August, M1 cooled to 19.0% in September and then slipped further to 13.5% in October. When the most liquid form of money dries up at that speed, it usually means the economy’s ability to spend, trade, and transact is being quietly choked.
The pressure is even more striking when looking at the reserve Money, which powers banks’ ability to create credit. It fell into negative territory at –6.4% in September before barely recovering to a thin 0.1% in October. Foreign-currency deposits, often a cushion in difficult periods, are also shrinking. After dropping by 15.0% in August and 6.8% in September, they plunged by 20.3% in October, removing yet another layer of liquidity from the system.
Taken together, these figures suggest that while the tightening of money supply is of course a necessary and effective step in the fight against inflation, it comes with trade-offs.
Slower M1 and M2+ growth, reduced reserves, and collapsing foreign deposits are all signs that the broader question of economic momentum is now pressing. Consumer spending, trade, and business activity are showing early signs of moderation, raising concerns that the very measures keeping inflation in check may also be slowing the engine of growth.
Policy measures are successfully curbing excess liquidity, but the data highlights a critical challenge: can Ghana maintain price stability without choking off the broader dynamism of the economy?
