Economic Activity Picks Up Amid Easing Inflation, Says BoG Governor
Ghana’s economy is showing signs of a sustained recovery, with key real sector indicators reflecting increased activity and improved business and consumer sentiment, the Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has disclosed.
Addressing journalists at the 124th Monetary Policy Committee (MPC) press briefing on Friday, May 23, 2025, Dr Asiama revealed that the Bank’s Composite Index of Economic Activity (CIEA) recorded a year-on-year growth of 2.3 percent in March 2025, up from 1.0 percent recorded during the same period last year.
The uptick in the index, he explained, was largely driven by a surge in exports, growth in private sector credit, and increased construction activity.
Additionally, the Ghana Purchasing Managers’ Index (PMI) climbed above the neutral 50-point benchmark, signalling a rebound in business activity. The increase in output and new orders, Dr Asiama noted, is a reflection of improved growth prospects in the near term.
“The latest consumer and business confidence surveys show the highest levels of optimism in the past seven years,” Dr Asiama stated, attributing the improved sentiment to easing inflationary pressures and a more stable macroeconomic environment.
Headline inflation, he noted, declined for the fourth consecutive month to 21.2 percent in April 2025, representing a cumulative drop of 2.6 percentage points since the beginning of the year. The decline was broad-based, covering both food and non-food inflation categories.
Dr Asiama cited a combination of factors for the disinflationary trend, including the Bank’s tight monetary policy stance, enhanced liquidity sterilisation efforts, downward adjustments in ex-pump petroleum prices, and relative stability of the Ghana cedi.
Furthermore, the Bank’s core inflation measure—which strips out volatile energy and utility prices—as well as inflation expectations from households, businesses, and the financial sector, all indicate softening price pressures.
The developments, the Governor said, provide a strong basis for a cautiously optimistic outlook on inflation and growth.
