The International Monetary Fund (IMF) has recently made a positive projection for Ghana’s economy, foreseeing an end-year single-digit inflation rate of 8% for 2025.
This aligns with the government’s own target for the same period, which aims to reduce inflation from 23% to 15% in 2024 and further to a single digit in 2025.
Ghana has not ended a year with a single-digit inflation rate since 2021 when it recorded 9.97%. However, inflation soared to a 22-year high of 54.1% despite a target of 31.9% in subsequent years. The IMF’s projection of 8% for 2025 reflects the positive impact of the robust measures and gains made under the IMF programme.
In addition to the inflation forecast, the IMF also anticipates a robust growth of 4.4% for Ghana in 2025, a significant increase from the 2.8% growth projected for 2024. The Bank of Ghana has pledged to maintain its end-year inflation target band of 15 plus or minus two percent for 2024, with plans to continue the disinflation process and mitigate underlying inflation risks through tight monetary policy.
Despite the positive outlook on inflation and economic growth, the IMF does foresee a decline of -2.2% in Ghana’s current account balance, which measures trade and financial activities in the country. Nonetheless, the overall economic growth outlook for Ghana is expected to rebound significantly from the following year.
