BoG economic data shows signs of stability – Analyst
By Rebecca Okine
Economic analyst Emmanuel Boateng has described the latest Economic and Financial Data from the Bank of Ghana (BoG) as a sign of growing stability in the country’s economy.
Speaking on the Business Breakfast show on Zed FM following the release of the May 2025 report, Mr. Boateng highlighted several key indicators that point to a cautiously optimistic outlook.
“Several key developments can be found in this May 2025 report by the Bank of Ghana,” he noted. “It presents a mixed but increasingly positive focus for our economy.”
Among the standout developments, Mr. Boateng pointed to the steady decline in inflation. He noted that headline inflation dropped to 21.2% in April 2025, down from 25% a year earlier.
“This indicates that the general increase in prices is gradually easing,” he explained. “It’s slowing down, which is welcome news for consumers.”
He also highlighted the significant appreciation of the cedi in May 2025 as another positive signal.
“There has been a noteworthy appreciation of the cedi. The dollar-to-cedi exchange rate improved to 11.85 in May, from 14.1 in April. That is a substantial short-term gain,” he said.
Ghana’s gross international reserves have also continued to rise, reaching $10.67 billion in 2025—another indicator of improving macroeconomic fundamentals.
“When you put all these together, these are signs of encouraging stability,” Mr. Boateng stated, while cautioning that some risks remain.
A key area of concern, he said, is the high level of non-performing loans (NPLs) in the banking sector, which stood at 23.6% as of April 2025.
“This poses a risk to credit growth and financial stability,” Mr. Boateng warned. “It needs careful management.”
He explained that non-performing loans represent funds banks have lent that are either overdue or not generating returns, weakening their balance sheets and potentially requiring recapitalization.
“That is an issue of asset quality,” he emphasized. “It deteriorates the value of bank assets and creates pressure on the financial sector.”
Despite the challenges, Mr. Boateng expressed cautious optimism. “These improvements in inflation, currency strength, and reserves offer some room for hope. But we must manage the risks wisely to sustain this momentum,” he added.
