BY Issah Olegor
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has announced that the economy has seen significant improvements with a positive outlook.
This announcement was made after the committee’s emergency meeting on July 18, 2025, to determine whether current conditions warranted any immediate action ahead of the scheduled 125th MPC meetings.
According to the committee, all macroeconomic indicators showed good results. Inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning.
The committee reaffirmed its commitment to support the recovery process without compromising the gains achieved so far.
The disinflation momentum has strengthened, with headline inflation falling steadily for six consecutive months to 13.7 percent in June 2025, down from 23.8 percent in December 2024.
Core inflation measures also show a re-anchoring of expectations. Real sector performance remains strong, with real GDP growth reaching 5.3 percent in the first quarter of 2025, driven by robust activity in agriculture and services sectors.
External Sector Continues to Strengthen
The external sector continues to strengthen, with 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.
These gains have contributed to higher reserve accumulation, with gross international reserves improving to US$11.1 billion as at end-June 2025, equivalent to 4.8 months of import cover.
Local Currency Appreciation
The local currency has appreciated significantly, gaining 42.6 percent year-to-date against the US dollar, supported by strong foreign exchange inflows from gold and cocoa exports, remittances, improved investor sentiments, and prudent policy implementation.
Global Environment Remains Uncertain
The global environment remains uncertain, with growth momentum weakening and projected to slow to 2.8 percent in 2025.
Global financial conditions remain tight, and disinflation, though ongoing, is expected to proceed unevenly. Despite this, the committee noted significant improvements in the current macroeconomic conditions and the positive outlook.
