The International Monetary Fund (IMF) has forecasted a single-digit inflation rate of 8% for Ghana by the end of 2025, aligning with the government’s target for the same period.
Ghana’s government aims to reduce the end-year inflation target from 23 percent to 15 percent in 2024, with further plans to reach a single-digit figure by 2025.
The country last achieved a single-digit inflation rate in 2021, standing at 9.97 percent. However, subsequent years witnessed a sharp increase, peaking at a 22-year record of 54.1 percent despite an initial target of 31.9 percent.
Presenting their World Economic Outlook Report at the ongoing IMF/World Bank Spring Meetings, the IMF paints a positive picture for Ghana’s economic future.
The IMF attributes the projected 8 percent inflation rate to the robust measures and progress made under the IMF programme.
The Bank of Ghana, in response, reaffirmed its commitment to maintaining an end-year target band of 15 percent plus or minus two percent for 2024. It anticipates continued disinflation processes and aims to mitigate underlying inflation risks through tight monetary policies.
Additionally, the IMF forecasts a substantial growth rate of 4.4 percent for Ghana in 2025, a notable increase from the 2.8 percent growth projected for 2024.
However, the IMF anticipates a decline of -2.2 percent in Ghana’s current account balance, reflecting trade and financial activities in the country.
Despite this challenge, the IMF remains optimistic about Ghana’s economic growth, expecting a significant rebound starting from next year.
Source: Graphic,