IMF projects single-digit inflation for Ghana by 2025 aligning with Government targets
The International Monetary Fund (IMF) has unveiled an optimistic economic outlook for Ghana, forecasting a significant drop in inflation to single digits by the end of 2025.
This projection aligns closely with the government’s ambitious targets, signaling a potential turnaround for the country’s beleaguered economy.
The IMF projects Ghana’s end-year inflation to be 8% for 2025, a marked improvement from the government’s aim to reduce inflation from 23% to 15% by the end of 2024 and subsequently achieve single-digit inflation for 2025.
This comes after a turbulent period that saw Ghana grappling with soaring inflation, reaching a 22-year high of 54.1% in recent years, far exceeding the target of 31.9%.
The last time Ghana reported a single-digit inflation rate was in 2021 at 9.97%.
The positive outlook from the IMF is attributed to the robust measures and gains made under the IMF programme, which has been instrumental in stabilizing Ghana’s economy and steering it towards recovery.
The Bank of Ghana has committed to maintaining its end-year inflation target band of 15% ± 2% for 2024, with expectations that the disinflation process will continue and underlying inflation risks will be managed through a tight monetary policy.
In addition to the encouraging inflation forecasts, the IMF has projected a robust economic growth rate of 4.4% for Ghana in 2025, marking a significant increase from the 2.8% growth anticipated for 2024.
This growth forecast suggests a strengthening of Ghana’s economic fundamentals and a positive trajectory for economic recovery.
However, the IMF anticipates a decline of -2.2% in Ghana’s current account balance, reflecting trade and financial activities in the country. Despite this concern, the IMF maintains that the overall outlook for Ghana’s economic growth is set for a significant rebound from next year, signaling cautious optimism for the country’s economic prospects.
