Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has urged the Monetary Policy Committee (MPC) to ensure that its policy decisions continue to reinforce Ghana’s ongoing economic recovery without compromising the hard-won macroeconomic stability.
Delivering his opening remarks at the MPC meeting on July 28, 2025, Dr. Asiama emphasized the importance of a policy stance that strikes a delicate balance between maintaining macroeconomic gains and enabling sustainable growth.
“Our mandate requires a balanced decision that reinforces stability while enabling sustainable growth,” he told committee members gathered at the BoG’s head office in Accra.
According to the Governor, the current economic landscape presents both opportunities and challenges. He said inflation expectations are now “more firmly anchored,” external buffers have been strengthened, and investor confidence is improving, creating a window for a potential recalibration of monetary policy.
“One of the key questions that should be under consideration is whether the current macroeconomic configuration permits a recalibration of the policy stance,” he noted.
Emerging Domestic Strength
Dr. Asiama painted a relatively optimistic picture of Ghana’s economic performance in the first half of 2025, citing data that shows firm signs of recovery.
“Real GDP expanded by 5.3 percent in the first quarter, driven by strong growth in agriculture and services, while non-oil GDP rose by 6.8 percent,” he disclosed.
He added that private sector credit growth had improved significantly, reaching 19.9 percent in April 2025, nearly doubling the growth rate from the same period in 2024, and that real credit contraction had narrowed substantially.
The Bank’s Composite Index of Economic Activity also recorded a 4.4 percent year-on-year growth in May, signaling renewed momentum in economic activity. “The latest PMI readings point to rising business and consumer confidence,” he said.
External Sector Gains
The Governor also highlighted Ghana’s improving external position, underpinned by robust commodity exports and investor inflows.
“Ghana recorded a provisional trade surplus of US$5.6 billion in the first half of 2025, supported by strong gold and cocoa export receipts,” Dr. Asiama revealed.
He added that the current account surplus had widened to US$3.4 billion over the same period, reflecting increased export competitiveness and improved macro fundamentals under Ghana’s IMF-supported economic programme.
“These developments have helped improve investor sentiment, bolstered by better credit ratings, and have further strengthened foreign exchange inflows,” he stated.
Caution Amid Challenges
Despite the encouraging data, the BoG Governor urged caution and strategic thinking in navigating forward-looking risks. He flagged fiscal legacy issues, such as the 7.9 percent deficit carried over from 2024, and ongoing tight liquidity conditions as key challenges that must guide policy decisions.
“Liquidity conditions are still tight, and we must remain attentive to the pace and breadth of policy transmission, particularly to credit channels and the productive sectors,” he warned.
He acknowledged that the 2025 Budget reflects a stronger commitment to fiscal consolidation but stressed the need to remain vigilant.
Global Headwinds Persist
Dr. Asiama also reflected on the global macroeconomic climate, noting that while oil prices have stabilized at around US$69.8 per barrel, global growth momentum is faltering.
“Growth momentum is weakening, with global growth projected to slow to 2.8 percent in 2025, down from 3.3 percent in 2024,” he said, adding that financial conditions remain tight, and the path of global disinflation remains uneven.
“Lingering geopolitical risks and trade tensions continue to cloud the outlook,” he added.
As the MPC prepares to announce its next policy rate decision, the Governor’s remarks underscore the importance of prudence, strategic clarity, and an unwavering commitment to macroeconomic resilience.
