Ghana’s economy showed strong signs of recovery and growth in the first half of 2025, buoyed by improved macroeconomic indicators across the real, financial, and external sectors.

According to the latest update from the Bank of Ghana, high-frequency real sector indicators point to a sustained pickup in economic activity during the first quarter.

This momentum is being driven by declining inflation, improved banking sector performance, and a strengthening cedi.

Headline inflation fell to 13.7 percent in June 2025, down from 18.4 percent in May—marking the lowest inflation rate since December 2021.

The central bank attributes this trend to improved supply conditions, relative exchange rate stability, and tight monetary policy management.

The banking sector continued to demonstrate resilience, with the Bank’s Financial Soundness Indicators (FSIs) showing consistent asset growth, stronger solvency ratios, improved liquidity, higher profitability, and better operational efficiency in the first half of the year.

Ghana’s external sector performance has also improved significantly.

The country recorded a current account surplus of US$3.4 billion in the first half of 2025—its highest on record.

Gross International Reserves reached US$11.1 billion at the end of June, enough to cover 4.8 months of imports of goods and services.

The Ghanaian cedi posted impressive gains against major international currencies.

As of July 25, 2025, the cedi had appreciated by 40.7 percent against the US dollar, 31.2 percent against the British pound, and 24.2 percent against the euro—reflecting improved confidence in the local currency and macroeconomic stability.

In response to the favourable economic outlook, the Bank of Ghana reduced the Monetary Policy Rate by 300 basis points to 25.0 percent.

This move is expected to support further economic expansion and ease credit conditions in the second half of the year.

These developments were captured during the 125th Monetary Policy Committee (MPC) meetings held in July 2025, where the Bank reaffirmed its commitment to maintaining stability while supporting growth.