Source: newsthemegh.com
Ghana’s inflation is expected to be in single digits by the International Monetary Fund (IMF), in line with the government’s 2025 targets.
By 2024 and 2025, respectively, the government hopes to reduce end-of-year inflation from 23% to 15% and even lower to a single digit. Ghana last had single-digit inflation in 2021, when it was 9.97%. However, inflation spiked in the years that followed, reaching a 22-year high of 54.1% despite a target of 31.9%.
Nonetheless, the IMF predicts a favorable trend in its World Economic Outlook Report released during the current IMF/World Bank Spring Meetings.
The IMF program’s strong measures and accomplishments are the reason for the projected 8% inflation rate.
In 2024, the Bank of Ghana promises to maintain its end-year goal range of 15% plus or minus 2%, anticipating that the disinflation process will continue and reducing underlying inflation risks through strict monetary policy.
Furthermore, Ghana is expected to have strong growth of 4.4% in 2025, according to the IMF, a considerable increase from the 2.8% predicted for 2024.
Nevertheless, taking into account trade and financial activity, the IMF projects a -2.2% reduction in Ghana’s current account balance.
In spite of this, the IMF continues to have a positive assessment of Ghana’s economic development and expects a significant upturn beginning in 2019.