Accra: Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has declared that Ghana's economy has shown significant advancements, yet he cautions that these gains need safeguarding to ensure the continuation of the recovery process.
According to Ghana Web, Dr Asiama highlighted various indicators of economic recovery such as declining inflation, reduced lending rates, stronger foreign reserves, and enhancements in the banking sector. In a Facebook post reacting to the World Bank's 10th Ghana Economic Update, he emphasized the importance of consolidating these gains for sustained economic growth.
The report noted a sharp decline in inflation, which dropped from 23.2% in February 2025 to 5.4% by December, attributing this reduction to the Bank of Ghana's stringent monetary policy, the appreciation of the cedi, and lower food prices. This decline paved the way for the BoG to lower its policy rate from 28% in April 2025 to 14% by March 2026.
Furthermore, average bank lending rates fell from about 27% in June 2025 to 15.6% in June 2026, facilitating cheaper borrowing for businesses and households. The lending to businesses and individuals saw a notable increase, with real private-sector credit growth reaching 34.1% in June 2026 after a 4.5% decline the previous year.
Ghana's foreign reserves showed improvement as well, with gross international reserves reaching US$13.8 billion by the end of 2025, sufficient to cover approximately 5.7 months of imports. The World Bank commended the BoG's strategy of converting some gold holdings into foreign-currency investments to earn interest.
The banking sector also showcased progress, with total banking-sector assets hitting GHS502.4 billion by June 2026 and the capital adequacy ratio rising to 20.4%, surpassing the required minimum of 13%. The level of non-performing loans decreased, with the ratio dropping from 23.1% to 16.1%.
Dr Asiama stressed the necessity of maintaining price stability, enhancing bank supervision, and managing Ghana's foreign reserves carefully. He affirmed the BoG's commitment to protecting price and financial stability to bolster businesses, households, and sustainable economic growth in the country.