In a year marked by economic turbulence, Ghana appears to be quietly turning a corner. With consumer inflation falling to 8.0 percent in October and tax revenues showing encouraging signs of recovery, the shift from crisis to stabilisation is no longer theoretical, it is visible in everyday business headlines and policy briefings. For Ghanaian entrepreneurs, investors and government officials alike, the critical question now is how this phase of stability can translate into meaningful growth in jobs, incomes and business expansion.
On 5 November, the Ghana Statistical Service announced that year-on-year consumer inflation declined to 8.0 percent in October, marking the tenth consecutive monthly drop and the lowest rate since mid-2021. Month-on-month inflation also slipped by 0.4 percent, indicating that, on average, consumer prices across major categories fell slightly compared to September. The decline was driven primarily by lower food price growth. Food inflation eased to 9.5 percent from about 11.0 percent the previous month, alongside moderating non-food inflation. Government Statistician Dr Alhassan Iddrisu described the trend as evidence that “price stability is returning and key drivers that once fuelled double-digit inflation are now losing momentum.”
This movement has implications for businesses, whose margins often suffer under high inflation and volatile costs. With inflation now entering the single digits, consumer purchasing power is beginning to recover, credit markets are feeling less pressure, and firms can more confidently plan for investment. For Ghana’s private sector, it may signal a transition from cost-containment mode into a growth orientation.
In parallel to the disinflation story, consumption and tax data point to a domestic rebound. The Bank of Ghana’s July 2025 Monetary Policy Report shows that domestic value-added tax (VAT) collections jumped by 33.6 percent in the first five months of 2025 compared to the same period the year before, reaching GH¢ 8.31 billion. Over the same time frame, retail sales rose cumulatively by about 35.7 percent, with May alone registering a 38.6 percent year-on-year increase to GH¢ 277.62 million. These figures signal not only revival in household spending but also improved tax compliance and business activity across the formal economy.
The revival in consumption matters because in Ghana, the private sector and household demand are central to job creation and growth. When consumers buy more goods and services, firms hire more staff, invest in new lines and expand supply chains. For many Ghanaian enterprises that battled weak demand during the height of the crisis, the message is clearer now: the “pull” side of the economy is gaining traction once again.
Yet despite these promising signs, underlying structural challenges remain. The informal economy is still huge in Ghana, which limits productivity gains and reduces the ability of firms to access formal finance or scale operations effectively. Infrastructure gaps persist. These include power outages, logistics issues and port delays continue to raise costs and disrupt operations. And while inflation has eased, interest rates remain high, meaning that borrowing for investment is still relatively expensive.
What makes the current moment especially important for Ghana is the alignment of favourable macro-conditions with the opportunity for structural change. The policy window where inflation is contained, demand is improving and investor confidence is creeping upward, offers an ideal moment for governments and firms to invest in value-addition, formalisation of small businesses and export diversification. For instance, Ghanaian exporters of processed goods, digital service firms and SMEs that embrace technology stand to capture the upside of the recovery.
For Ghanaian business leaders, the strategic imperative is clear. They must move beyond reacting to a crisis and into proactive positioning. This means formalising business operations, adopting technologies that raise productivity, tightening supply chains for global competitiveness and making strategic investments while the cost of capital and price instability are easing. For policymakers, the task is to maintain macro-discipline while accelerating reforms that unlock private investment. Thus, improving power reliability, reducing red tape, strengthening export logistics and incentivising local manufacturing.
The real test for Ghana will be whether this renewed stability can feed into inclusive growth, higher employment, better wages and stronger small and medium-sized enterprises that no longer merely survive but thrive. Achieving that will require coordination: between the government’s policy agenda, the banking and financial system, and the private sector. If Ghana can successfully convert the current momentum into deeper structural gains, the next phase of growth may look altogether different, less about survival and more about expansion.
For The High Street Journal’s readers, the message is timely. The narrative is no longer simply “the economy is recovering”. It is now “the economy is ready to grow”. How individual businesses respond, how policymakers facilitate that growth, and how Ghana positions itself in regional and global value chains will determine whether this moment becomes a turning point or just another cycle of transient improvement.
As Ghana strides into this next chapter, entrepreneurs, investors and government must ask themselves: Are we ready to invest for growth, or content simply to welcome lower inflation? The difference, in this new era, may determine whether Ghana’s economy moves from stability into sustainable expansion.
