The IMF has projected that Ghana will achieve a single-digit inflation rate of 8% by the end of 2025, aligning with the government’s target for the same period.
Ghana aims to decrease its end-year inflation from 23% to 15% in 2024 and further reduce it to single digits in 2025.
The last time Ghana ended a year with single-digit inflation was in 2021, at a rate of 9.97%.
However, inflation soared to a 22-year high of 54.1% afterward, surpassing the target of 31.9%.
According to the IMF’s World Economic Outlook Report during the ongoing IMF/World Bank Spring Meetings, there’s a positive outlook.
The IMF’s 8% inflation projection for Ghana reflects the effectiveness of robust measures and gains made under the IMF program.
The Bank of Ghana aims to stay within its end-year target band of 15% plus or minus two percent for 2024, expecting the disinflation process to continue thereafter with tight monetary policy to mitigate underlying inflation risks.
The IMF forecasts a robust growth of 4.4% for Ghana in 2025, a notable increase from the 2.8% projected for 2024.
However, there’s an anticipated decline of -2.2% in Ghana’s current account balance, which measures trade and financial activities.
The IMF also asserts that, the overall outlook for Ghana’s economic growth is poised for a substantial rebound starting from next year.
