Ghana is expected to have single-digit inflation of 8% by year’s end according to IMF projections for 2025.
This is in line with the government’s goal for that same time frame.
According to the government, Ghana’s end-year inflation target will decrease from 29 to 15 percent and then sharply to a single digit in 2024 and 2025, respectively.
Ghana last had single-digit inflation at the end of the year (2021, at 9.97%), but after that, things really started to go south, with the country’s inflation rate setting a 22-year record at 54.1% even though the objective was supposed to be 31.9%.
However, the IMF is predicting a bright future in its World Economic Outlook Report released during the ongoing IMF/World Bank Spring Meetings.
The strong actions and advancements made under the IMF program account for the IMF’s 8% prediction.
According to the Bank of Ghana, it would stick to its end-of-year target range of 15 percent plus or minus 2 percent in 2024.
Additionally, it anticipates that the process of disinflation will continue after restrictive monetary policy has managed underlying inflation concerns.
Additionally, the Fund predicted that Ghana will expand at a strong rate of 4.4% in 2025, which is a considerable improvement from the 2.8% growth predicted for 2024.
The IMF, however, projects that Ghana’s current account balance—which gauges the nation’s trade and financial activity—will drop by -2.2 percent.
Despite this, the IMF maintains that the overall outlook for Ghana’s economic growth is set for a significant rebound from next year.