Falling Inflation and Stronger Cedi Signs of 2025 Recovery – Finance Ministry
By Praisebell Rosemond Larbi
The Ministry of Finance Ghana has reported significant improvements in the country’s macroeconomic performance, citing declining inflation, easing interest rates and a markedly stronger cedi as clear indicators of Ghana’s economic recovery in 2025.
In a press statement issued on Monday, February 23, 2026, the Ministry outlined what it described as broad-based gains across key economic indicators, reflecting the impact of coordinated fiscal and monetary policy measures implemented over the past year.
According to the statement, provisional real Gross Domestic Product (GDP) growth reached 6.1 percent year-on-year for the first three quarters of 2025. The expansion was largely driven by robust performance in the services and agriculture sectors, both of which recorded sustained output growth during the period.
Non-oil GDP growth outperformed the headline figure, rising to 7.5 percent compared to 5.8 percent over the same period in 2024. The stronger non-oil performance signals increasing diversification within the economy and reduced reliance on petroleum-related activity.
On the inflation front, the Ministry highlighted a sustained downward trend that has significantly improved price stability. Headline inflation, which stood at 23.5 percent in January 2025, declined steadily for thirteen consecutive months to reach 3.8 percent by January 2026. The sharp disinflation marks one of the most notable macroeconomic shifts over the review period.
Interest rates have also adjusted downward in response to easing price pressures and improved liquidity conditions. The 91-day Treasury bill rate dropped from 27.7 percent at the end of 2024 to 6.5 percent in February 2026, reflecting lower government short-term borrowing costs. Average commercial lending rates similarly declined from 30.25 percent in 2024 to 20.45 percent in 2025, providing some relief to businesses and households.
The cedi recorded substantial appreciation against major international currencies. By the end of December 2025, the local currency had strengthened by 40.7 percent against the US dollar. It also appreciated by 30.9 percent against the pound sterling and 24.0 percent against the euro, reinforcing improved external sector stability.
Ghana’s current account registered a surplus of US$9.1 billion, while gross international reserves rose to US$13.8 billion, equivalent to 5.7 months of import cover. The Ministry noted that these developments have bolstered investor confidence and enhanced external buffers.
According to the Ministry, the turnaround reflects disciplined fiscal consolidation and supportive monetary policy aimed at restoring macroeconomic stability. It emphasised that maintaining stability remains central to the government’s strategy to deepen economic growth, expand private sector participation and improve living standards across the country.
