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 of 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 next year.
Source: graphic.com.gh