Macroeconomic Conditions Strengthen as Reserves Rise to $14.5bn; Inflation Declines to 3.3%
Ghana’s macroeconomic conditions have strengthened considerably in recent months, with inflation easing sharply, international reserves rising, and economic activity gaining momentum, according to the Governor of the Bank of Ghana, Dr Johnson Pandit Asiama.
Delivering his opening remarks at the 129th Monetary Policy Committee (MPC) meeting on March 16, 2026, Dr Asiama noted that recent economic data points to a faster-than-expected stabilisation of the Ghanaian economy.
Headline inflation, he disclosed, declined to 3.3 percent in February 2026, marking the fourteenth consecutive monthly decline and placing inflation below the central bank’s medium-term target band.
“These are numbers that, not long ago, would have been considered aspirational,” he told participants at the MPC meeting.
According to the central bank governor, the country’s external buffers have also improved significantly. Ghana’s gross international reserves increased to approximately US$14.5 billion, equivalent to 5.8 months of import cover, up from about US$13.8 billion recorded during the January MPC meeting.
The improvement in reserves strengthens the country’s ability to withstand external shocks and support exchange rate stability.
On the domestic front, economic activity is also showing stronger momentum. The Composite Index of Economic Activity (CIEA) expanded 8.4 percent year-on-year at the start of 2026, driven by stronger bank credit growth, industrial output, trade activity and household consumption.
Dr Asiama further indicated that consumer and business confidence improved in February, largely supported by easing inflationary pressures.
“Taken together, these indicators point to an economy stabilising more rapidly than many had expected,” he said.
The latest macroeconomic data forms part of the key considerations for the Monetary Policy Committee as it deliberates on the appropriate policy stance for the Ghanaian economy.
The Governor emphasised that while recent gains are encouraging, the role of monetary policy remains to ensure that these improvements are sustained over the medium term.
