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Ghana on track to reach 8% single-digit inflation rate by 2025 – IMF

The International Monetary Fund (IMF) foresees Ghana ending 2025 with single-digit inflation, estimating it at 8%, in line with the government’s objectives.

Ghana aims to reduce its end-year inflation from 23% to 15% in 2024, further plummeting to single digits by 2025.

Although Ghana last achieved single-digit inflation in 2021, subsequent years witnessed a drastic rise, hitting a 22-year high of 54.1% despite a targeted rate of 31.9%.

However, the IMF’s World Economic Outlook Report at the ongoing IMF/World Bank Spring Meetings paints a promising picture.

This 8% projection credits the robust measures and progress achieved under the IMF program.

The Bank of Ghana commits to staying within its 2024 end-year target band of 15%, plus or minus two percent, while expecting the disinflation trend to persist, mitigating underlying inflation risks through stringent monetary policies.

Furthermore, the IMF predicts a robust 4.4% growth for Ghana in 2025, a marked improvement from the 2.8% forecast for 2024. Nevertheless, it anticipates a -2.2% decline in Ghana’s current account balance, reflecting trade and financial activities.

Despite this setback, the IMF maintains an optimistic outlook, expecting a substantial economic rebound for Ghana in the coming years.

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