Ghana Records Strongest Cedi Gains in Years as Inflation Falls to 13.7%
Ghana’s economic recovery gained further momentum in the first half of 2025, with the cedi posting its strongest appreciation in recent years and inflation falling to a three-and-a-half-year low, according to Bank of Ghana Governor Dr. Johnson Pandit Asiama.
Opening the 125th Monetary Policy Committee (MPC) meeting in Accra, Dr. Asiama reported that headline inflation declined for six consecutive months, reaching 13.7% in June 2025 which the lowest since December 2021, driven by disciplined fiscal and monetary management and a stronger cedi.
Economic activity accelerated, with provisional GDP growing 5.3% in the first quarter, led by agriculture and services. Non-oil GDP rose by 6.8%, while the Bank’s Composite Index of Economic Activity increased 4.4% in May, boosted by consumption, trade, cement sales, and a rebound in tourism.
External conditions improved markedly. Ghana posted a provisional trade surplus of US$5.6 billion and a current account surplus of US$3.4 billion in the first half of 2025. The cedi appreciated 42.6% against the US dollar, 30.3% against the pound, and 25.6% against the euro, supported by higher export receipts from gold and cocoa, stronger remittance inflows, and renewed investor confidence following IMF programme reviews.
Fiscal discipline contributed significantly to stability, with a primary surplus of 1.1% of GDP, a fiscal deficit narrowed to 0.7%, and public debt stock reduced by 15.6% to a debt-to-GDP ratio of 43.8%.
“The key question now is whether the current macroeconomic configuration warrants a recalibration of our monetary policy stance,” Dr. Asiama told MPC members. He cautioned that risks remain, including potential exchange rate volatility, rising crude prices, and tax changes under the mid-year budget that could influence inflation expectations.
The Governor reaffirmed the central bank’s commitment to maintaining price stability while supporting inclusive growth.
