Improving Economy Not by Accident, but Strict Policy Choices – BoG Governor
By Praisebell Rosemond Larbi
Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has dismissed claims that Ghana’s improving economic indicators are accidental or the result of temporary good fortune, insisting that recent gains are the product of deliberate and often difficult policy decisions.
Speaking at the opening of the 128th meeting of the Monetary Policy Committee (MPC), Dr. Asiama said the country’s improving macroeconomic performance reflects restored policy credibility, underpinned by discipline and consistency, rather than chance.
“Critics who suggest that the current outcomes are accidental must rethink,” the Governor stated, adding that Ghana has entered a phase where “the numbers look good,” but warned that the progress remains fragile and should not encourage complacency.
According to him, the macroeconomic stability being recorded today is “earned, not accidental,” and stems from strict policy choices taken over the past year, particularly in monetary management, fiscal coordination and external sector stabilisation.
Dr. Asiama noted that inflation, which directly affects household welfare, fell sharply to 5.4 percent at the end of 2025, signalling easing price pressures and improving inflation expectations. He explained that the slowdown in inflation has begun to translate into more predictable costs for essentials such as food, transport and utilities, allowing households and businesses to plan with greater certainty.
On the external front, the Governor said Ghana’s buffers have strengthened markedly. Gross international reserves rose to US$13.8 billion, equivalent to 5.7 months of import cover, supported by a current account surplus of 8.1 percent of GDP. This, he said, places the economy in a stronger position to meet essential import needs, withstand external shocks and reduce pressure on the cedi.
Dr. Asiama also pointed to sustained economic growth as further evidence of improving fundamentals. He said output expansion through the third quarter of 2025 remained strong, with forward-looking indicators suggesting continued momentum into 2026.
“This growth is already supporting confidence among consumers and businesses, which is critical for investment, job creation and expansion,” he noted.
Crucially, the Governor linked the improved outcomes directly to policy credibility, stressing that credibility, once lost, can only be rebuilt through results.
“These outcomes confirm that recent policy choices are yielding results and that policy credibility has been restored,” he said.
However, Dr. Asiama cautioned that the MPC’s role is not to celebrate success but to rigorously interrogate the data to determine whether stability can be sustained. He warned that 2026 will be a testing year for monetary policy, with decisions taken now playing a decisive role in locking in gains and preventing a relapse.
“We are convening at a moment where, on one hand, all the indicators look good, but on the other, these improved conditions remind us that the work has only begun. This will test our monetary policy in 2026,” he stated.
As the first MPC meeting of 2026 gets underway, the BoG Governor maintained that Ghana’s improving economic outlook is the result of tough policy choices rather than luck, adding that sustaining credibility will require continued discipline, vigilance and restraint.
