Ghana’s Economy Moving from Recovery to Expansion — BoG Governor
Governor of the Bank of Ghana, Dr Johnson Asiama, says fresh economic data show that Ghana is transitioning from a period of recovery into a firm phase of expansion, underpinned by stronger growth across key sectors.
Addressing the opening session of the 127th Monetary Policy Committee (MPC) meetings on Monday, 24 November 2025, Dr Asiama noted that the macroeconomic gains recorded so far this year point to a narrowing negative output gap and a steadily improving growth outlook.
Taken together, he said, the indicators suggest a clear shift in the economic landscape. “The figures show that Ghana’s economy is gradually shifting from recovery to expansion,” he stated. “Taken together, the gains in Ghana’s economy confirm that the negative output gap is narrowing, and the economy is gradually shifting from recovery to expansion.”
For the first half of the year, Gross Domestic Product (GDP) expanded by 6.3 per cent, supported mainly by robust performances in services and agriculture. Non-oil GDP, which captures the real momentum of the domestic economy, grew even faster at 7.8 per cent.
High-frequency indicators also point to sustained activity. The Composite Index of Economic Activity has risen by about 9 per cent, while business and consumer confidence surveys continue to show strengthening optimism among firms and households.
According to the Governor, the recent turnaround did not happen by chance. “It reflects sustained fiscal discipline, a cautious but determined monetary stance, and structural policy reforms, particularly the improvements in the FX operations framework and the rebuilding of external buffers. The 2026 Budget reinforces this discipline and places growth and job creation at the centre of Ghana’s next phase of economic transformation,” he said.
Looking ahead, Dr Asiama said the outlook remains broadly positive. Staff projections, supported by real-sector data, show that the economy is on track to maintain a stable expansion through 2026. The upcoming harvest season, better food supply dynamics, improved foreign exchange liquidity and a gradually easing credit environment are expected to reinforce growth.
Non-oil sectors including services, industry and agriculture, will remain the main anchors of the expansion, he added.
“The broader macro-framework also supports this trajectory. Money supply growth has moderated significantly, helping anchor inflation. Real rates remain high, creating room for a carefully calibrated easing cycle. And with inflation likely to settle between 4–6 percent by year-end before stabilising around the target band in 2026, Ghana is entering what could become a multi-year period of price stability.”
Despite the favourable outlook, Dr Asiama cautioned that both global and domestic risks remain. “At the same time, the global environment remains fragile, and we must remain alert to risks, commodity price swings, geopolitical tensions, and tighter external financial conditions. Domestically, pressures around taxes, utilities, and costs of credit continue to weigh on business activity, even amid improved optimism,” he said.
The MPC is expected to announce its policy rate decision at the end of the meetings this week.
