Ghana’s economy is showing encouraging signs of recovery, but maintaining this momentum will require consistent policy implementation, bold structural reforms, and unified national effort, according to the Bank of Ghana.

This was the central message delivered by Mr. Osei Gyasi of the Bank’s Governance Department during the inaugural Daily Graphic/Ecobank Ghana Economic Forum, held on May 28, 2025, at the Ecobank Head Office in Accra.

Speaking on behalf of the central bank, Mr. Gyasi said Ghana is gradually recovering from years of economic instability, thanks to tighter monetary policies, improved external sector performance, and reforms under the ongoing International Monetary Fund (IMF) programme.

He commended the organisers for creating a platform for open dialogue and encouraged participants to use the forum to collaboratively shape a roadmap for economic renewal.

Mr. Gyasi noted that Ghana’s economic outlook had improved significantly in 2025. The cedi has rebounded, reversing a 19.2% depreciation recorded in 2024. Inflation has also eased from 23.8% in December 2024 to 21.2% in April 2025, supported by currency stability, disciplined monetary policy, and improved supply-side conditions.

The external sector has seen notable gains, including a strong current account surplus in the first quarter of 2025, driven primarily by gold and cocoa exports. Ghana’s gross international reserves hit a record $10 billion at the end of April, equivalent to 4.7 months of import cover.

Real GDP growth for 2024 stood at 5.7%, surpassing expectations, with a 4% growth forecast for 2025. These improvements have boosted investor confidence, leading to a credit rating upgrade by S&P from ‘selective default’ to ‘CCC+’.

Despite the encouraging trends, Mr. Gyasi warned that the recovery remains fragile. He pointed to persistent fiscal pressures, potential currency volatility, and global economic uncertainty as risks that could derail progress. He stressed the importance of strong coordination between monetary and fiscal policy, warning that even a single policy misstep could reverse recent gains.

In line with this cautious stance, the Bank of Ghana’s Monetary Policy Committee voted unanimously in May 2025 to maintain the policy rate at 28%, aiming to consolidate gains in inflation reduction.

He also announced a reform to the cash reserve ratio framework, which now requires banks to hold reserves in the currency of their deposits. This change, he said, is designed to improve liquidity management and strengthen the transmission of monetary policy.

Touching on the banking sector, Mr. Gyasi acknowledged concerns over asset quality but said the system remains stable and well-capitalised. The non-performing loan (NPL) ratio stands at 23.6%, but drops to 9% when adjusted for loan-loss provisions—indicating banks are actively addressing credit risks.

The sector’s capital adequacy ratio was reported at 15.8% as of April 2025, well above the regulatory minimum of 10%, demonstrating the banking system’s overall resilience.

Mr. Gyasi emphasized that while macroeconomic stability is essential, it is not sufficient for long-term transformation. He called for a broader economic strategy focused on value addition, diversification, and growth in key sectors such as agro-processing, light manufacturing, logistics, tourism, education, and health.

“These sectors offer enormous potential for job creation, export growth, and innovation,” he noted, adding that targeted policies and infrastructure investment will be critical to unlocking this potential.

He further pointed out structural weaknesses, including limited domestic revenue mobilisation, inefficient public financial management, and governance deficits. Addressing these issues, he said, is crucial to building a more competitive and resilient economy.

In his closing remarks, Mr. Gyasi acknowledged the challenges ahead but stressed that with courage, integrity, and collective effort, Ghana can build a stable, sovereign, and globally competitive economy.

He reaffirmed the Bank of Ghana’s commitment to prudent policy and urged participants to ensure that the forum becomes a real driver of national economic transformation.

The event, held under the theme “A Broad Review of the Economy of Ghana: Then, Now, and the Way Forward,” also featured contributions from Presidential Advisor on the Economy, Seth Terkper, and PwC Ghana’s Tax Partner, Abeku Gyan-Quansah. Discussions focused on monetary policy, taxation, and fiscal discipline, with a shared vision of repositioning Ghana for sustained economic growth.