Inflation Target of 11.9% Achievable if Government Stays on Course – Deloitte
Deloitte Ghana, in its 2025 Budget Analysis Report, has indicated that the government’s projected decline in inflation to 11.9% by the end of 2025 is attainable, provided that policy measures aimed at addressing high inflation are effectively implemented.
The report highlights the Agriculture for Transformation Agenda as a key initiative to tackle inefficiencies along various food value chains, thereby boosting production and controlling food inflation—identified as the primary driver of recent inflationary pressures.
Deloitte further advises the government to take emerging geopolitical risks into account, particularly those stemming from Europe, America, and Russia, which could lead to trade wars and disrupt pricing stability. The firm urges proactive policy measures to mitigate the adverse effects of these risks on the economy.
Additionally, Deloitte acknowledges the government’s current interventions to manage foreign exchange (FX) risks, including:
- Streamlining gold sales through GoldBod,
- Intensifying forward FX auctions,
- Reducing public spending and budget deficit, and
- Prioritizing import substitution.
However, the firm identifies declining cocoa production as a critical issue that must be addressed to enhance foreign exchange reserves and ease FX demand pressures.
Despite currency depreciation concerns, Deloitte projects a continued slowdown in depreciation for the rest of the year, supported by expected foreign exchange inflows from the IMF programme and the World Bank Development Policy Operation (DPO) funding.
