Ghana’s Economic Recovery Gains Ground, But Reforms Must Deepen – Bank of Ghana Warns

Ghana’s economic recovery is showing signs of renewed momentum, but the journey toward long-term stability and inclusive growth remains fragile and heavily dependent on sustained policy reforms.

That was the central message delivered by Mr. Osei Gyasi of the Bank of Ghana’s Governance Department at the inaugural Daily Graphic/Ecobank Ghana Economic Forum held in Accra on May 28, 2025.

Speaking on behalf of the central bank, Mr. Gyasi noted that while macroeconomic indicators have improved significantly in recent months, Ghana must not become complacent. The central bank, he said, views the rebound as real, but not irreversible.

“We are seeing encouraging signs of recovery—stability in the cedi, moderation in inflation, and a strong external sector. However, these gains are fragile and could be easily reversed without policy consistency, fiscal prudence, and structural transformation.”

Mr. Osei Gyasi

Macroeconomic Progress

According to Mr. Gyasi, Ghana’s cedi has made impressive gains in 2025, reversing a steep 19.2 per cent depreciation recorded in 2024. This has contributed to a significant decline in inflation, which dropped from 23.8 per cent in December 2024 to 21.2 per cent in April 2025. He attributed this to currency stability, tighter monetary policy, and improved supply-side conditions.

The Bank of Ghana also highlighted a marked improvement in the external sector. Ghana recorded a strong current account surplus in the first quarter of 2025, driven by high-performing gold and cocoa exports. This contributed to a rise in gross international reserves, which reached a historic $10 billion by the end of April—equivalent to 4.7 months of import cover.

Real GDP growth for 2024 stood at an impressive 5.7 per cent, surpassing earlier projections. Growth for 2025 is expected to moderate to 4 per cent, but Mr. Gyasi noted that investor confidence has returned, evidenced by S&P’s upgrade of Ghana’s credit rating from ‘selective default’ to ‘CCC+’.

Caution Amid Optimism

Despite the positive indicators, Mr. Gyasi warned that significant risks remain. Fiscal pressures, potential currency volatility, and uncertainties in the global economic environment could undermine progress.

In this regard, he emphasized the need for continued coordination between monetary and fiscal authorities. “A single misstep could jeopardize our hard-won gains,” he cautioned.

To consolidate the progress on inflation, the Bank of Ghana’s Monetary Policy Committee (MPC) unanimously voted to maintain the policy rate at 28 percent during its May 2025 meeting. The central bank also introduced a reform to its cash reserve ratio framework, requiring banks to hold reserves in the currency of their respective deposits—a move designed to strengthen liquidity management and monetary policy transmission.

Banking Sector Stability

Mr. Gyasi also addressed developments in the banking sector, where the non-performing loan (NPL) ratio stood at 23.6 per cent. However, when adjusted for provisions, the figure dropped significantly to 9 per cent, indicating that banks are actively managing asset quality.

He stressed that the sector remains resilient, with a capital adequacy ratio of 15.8 per cent as of April 2025—well above the regulatory minimum of 10 per cent.

While acknowledging that macroeconomic stability is necessary, Mr. Gyasi underscored that it is not sufficient to secure Ghana’s long-term prosperity. He advocated for a more diversified and value-added growth model that moves beyond over-reliance on commodity exports.

“We must invest in strategic sectors such as agro-processing, light manufacturing, logistics, tourism, education, and health. These sectors hold immense potential for job creation, export expansion, and innovation.”

Mr. Osei Gyasi

He also called for targeted policy support, enhanced infrastructure, and strong institutions to address long-standing structural challenges such as limited domestic revenue mobilisation, weak public financial management, and governance lapses.

Mr. Gyasi concluded by reminding stakeholders that Ghana’s economic transformation will not be achieved by the central bank or government alone. Rather, it will require a collective national effort, marked by policy discipline, institutional reform, and a commitment to transparency and the rule of law.

“The road ahead will be difficult, but with courage, integrity, and unity of purpose, we can build a stable, sovereign, and globally competitive Ghana.”

Mr. Osei Gyasi

He praised the Graphic/Ecobank Economic Forum for fostering dialogue on economic renewal and urged participants to use it as a springboard for crafting a new vision for the country’s development.

The forum, held at the Ecobank Head Office, also featured insights from former Finance Minister and Presidential Advisor on the Economy, Seth Terkper, as well as PwC Ghana’s Tax Partner, Abeku Gyan-Quansah. Discussions focused on monetary policy, taxation, and fiscal discipline, all aimed at repositioning Ghana’s economy for sustainable growth.

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