Diversified Growth Pushes Ghana’s Economy into Expansion Mode — BoG
By Praisebell Rosemond Larbi
Governor of the Bank of Ghana, Dr. Johnson Asiama, says Ghana’s economy is firmly shifting from a period of recovery into a new phase of real, broad-based expansion, supported by stronger-than-expected performance across key sectors and deliberate policy reforms aimed at stabilising the macroeconomic environment.
Addressing participants at the opening of the 127th Monetary Policy Committee (MPC) meeting, Dr. Asiama noted that economic activity has strengthened markedly during the current quarter. He explained that the latest data point to an economy no longer dependent on a narrow set of growth drivers but one in which momentum is increasingly diversified.
“What stands out this quarter is the broad momentum in economic activity. Growth has been stronger and more diversified than anticipated. The negative output gap continues to narrow, signalling that the economy is moving steadily from recovery to expansion,” the Governor stated.
Ghana posted a 6.3 percent GDP growth rate in the first half of 2025, anchored by robust activity in services and agriculture. Non-oil GDP, which better reflects underlying economic conditions, surged to 7.8 percent, its strongest performance in recent years. According to the Bank of Ghana, high-frequency economic indicators point to sustained improvement, with the Composite Index of Economic Activity rising by about 9 percent. Business and consumer confidence surveys also show continued optimism about near-term prospects.
Dr. Asiama attributed the improved performance to a combination of strengthened fiscal consolidation and consistent monetary policy actions, which together helped stabilise inflation, reinforce exchange rate management, and rebuild external buffers. He stressed that recent structural reforms, particularly in the foreign exchange market, have helped reduce volatility and improve market transparency.
The 2026 Budget, he added, reinforces this policy direction and places job creation, productivity expansion, and long-term economic transformation at the centre of government’s macroeconomic strategy. “The budget sustains the discipline we have collectively worked towards,” the Governor said, emphasising that maintaining stability while stimulating private-sector-led growth will be critical in sustaining the economy’s current trajectory.
The 127th MPC meeting, which began on Monday, comes at a pivotal moment as the committee reviews the macroeconomic landscape following months of consistent disinflation and the gradual easing of financial pressures. Headline inflation has continued to decline, reaching 8 percent in October on the back of tight monetary conditions, improved food supply, and enhanced policy coordination between fiscal and monetary authorities. This marks the lowest inflation rate in several years and strengthens expectations of a more stable price environment heading into 2026.
The committee is expected to examine developments in inflation, exchange rate conditions, credit dynamics, fiscal policy performance, and external sector indicators before determining the next policy rate decision. Analysts say the meeting could set the tone for discussions on future adjustments to monetary policy as the economy transitions into a new growth phase.
Dr. Asiama cautioned, however, that sustaining the gains will require vigilance. Global risks, including geopolitical tensions, commodity price swings, and uncertain investor sentiment continue to pose threats to emerging markets such as Ghana. Domestically, maintaining discipline in public spending, keeping debt on a sustainable path, and supporting productive sectors remain essential.
Still, the overall picture, according to the central bank, is one of cautious but strengthening optimism. With diversified growth engines gaining momentum, inflation easing, and reforms taking root, Ghana’s economy appears to be entering a period of more stable, broad-based expansion, marking a significant milestone in its post-crisis recovery journey.
