The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, says the country’s consistent drop in inflation is proof of government’s disciplined approach to managing the economy.
Inflation, he noted, has fallen for six consecutive months, reaching 13.7 percent in June 2025, the lowest since December 2021.
“This decline reflects multiple reinforcing factors, including disciplined monetary and fiscal policy management and the appreciation of the cedi,” Dr. Asiama stated while addressing the opening session of the 125th Monetary Policy Committee (MPC) Meeting on Monday, July 28.
The Governor explained that the country’s economic recovery is gaining traction, with strong improvements in growth, trade, and public confidence.
Provisional data shows the economy grew by 5.3 percent in the first quarter of the year, with non-oil GDP expanding even faster at 6.8 percent.
He also reported stronger external sector conditions, with a provisional trade surplus of $5.6 billion and an appreciation of the cedi by 42.6 percent against the US dollar.
On the fiscal side, Dr. Asiama cited significant gains, including a reduction in the debt-to-GDP ratio to 43.8 percent and actual spending falling 14.3 percent below target.
“These outcomes signal a credible path to debt sustainability and macroeconomic stability,” he noted.
He, however, cited some risks including potential exchange rate volatility, crude oil price hikes, and the inflationary impact of new taxes to be introduced in the mid-year budget.
