The Ghanaian economy is demonstrating renewed signs of recovery; however, maintaining this progress will necessitate consistent policy implementation, comprehensive structural reforms, and a collective national commitment.
This was the central message conveyed by Mr. Osei Gyasi of the Bank of Ghana’s Governance Department during his address at the inaugural Daily Graphic/Ecobank Ghana Economic Forum held in Accra on May 28, 2025.
Representing the central bank, Mr. Gyasi stated that the economy is gradually recovering from years of cyclical crises and structural vulnerabilities, supported by stringent monetary policy, enhanced external sector performance, and ongoing reforms under the International Monetary Fund (IMF) program.
He commended the organizers for establishing a platform for open and honest discourse regarding the economy and encouraged participants to utilize the forum as a foundation for collaboratively developing a roadmap toward economic renewal.
Mr. Gyasi observed that signs of recovery have become increasingly evident in 2025, highlighted by the appreciation of the cedi, which has reversed a 19.2 percent depreciation recorded in 2024. He noted that inflation has significantly decreased from 23.8 percent in December 2024 to 21.2 percent in April 2025, aided by currency stability, tight monetary policy, and improved supply-side conditions.
He referenced a notable improvement in the external sector, marked by a robust current account surplus in the first quarter of 2025, driven by gold and cocoa exports.
Ghana’s gross international reserves reached $10 billion at the end of April—an unprecedented high—equivalent to 4.7 months of import cover. The country also achieved a real GDP growth of 5.7 percent in 2024, surpassing expectations, and is projected to grow by four percent in 2025. Mr. Gyasi indicated that these developments have fostered renewed investor confidence, culminating in an upgrade of Ghana’s credit rating by S&P from ‘selective default’ to ‘CCC+.’
However, Mr. Gyasi cautioned that the progress achieved remains precarious. He highlighted that fiscal pressures, currency volatility, and the global economic environment continue to present significant risks. He emphasized the necessity for close coordination between monetary and fiscal authorities, noting that a single misstep could undermine the hard-won gains.
Regarding monetary policy, he disclosed that the Bank of Ghana’s Monetary Policy Committee unanimously decided to maintain the policy rate at 28 percent during its May 2025 meeting.
He explained that this was a deliberate decision aimed at consolidating the achievements made in reducing inflation. Additionally, he announced a structural reform to the cash reserve ratio framework, mandating banks to hold reserves in the currency of their respective deposits—a measure intended to enhance liquidity management and the effectiveness of monetary policy transmission.
Mr. Gyasi acknowledged ongoing concerns within the banking sector, particularly in relation to asset quality. He reported that the non-performing loan ratio stood at 23.6 percent but decreased to 9 percent when adjusted for provisions, indicating that banks are actively addressing their loan portfolios. He stressed that the banking system remains robust and well-capitalized, with a capital adequacy ratio of 15.8 percent as of April 2025, significantly above the regulatory minimum of 10 percent.
Looking forward, Mr. Gyasi contended that while macroeconomic stability is essential, it is insufficient for resetting Ghana’s economy. He advocated for a broader growth model that extends beyond dependence on gold and cocoa, urging increased investment in value addition, diversification, and strategic sectors such as agro-processing, light manufacturing, logistics, tourism, education, and health.
He emphasized that these sectors possess significant potential for job creation, export expansion, and innovation but require targeted policy support and infrastructure investment.
Furthermore, he underscored the importance of addressing structural challenges such as limited domestic revenue mobilization, weak public financial management systems, and governance gaps. According to him, Ghana’s economic transformation will rely not only on effective policy tools but also on policy consistency, institutional reform, and a commitment to transparency and the rule of law.
In his concluding remarks, Mr. Gyasi acknowledged that the path ahead would be challenging but asserted that with courage, integrity, and collective effort, the objective of establishing a stable, sovereign, and globally competitive Ghana is attainable.
He reaffirmed the Bank of Ghana’s commitment to prudent policy implementation and encouraged participants to ensure that the forum serves as a genuine catalyst for national economic renewal.
The forum, held at the Ecobank Head Office under the theme “A Broad Review of the Economy of Ghana: Then, Now, and the Way Forward,” also featured contributions from Presidential Advisor on the Economy, Seth Terkper, and PwC Ghana’s Tax Partner, Abeku Gyan-Quansah. Participants engaged in discussions on issues related to monetary policy, taxation, and fiscal discipline, focusing on repositioning Ghana’s economy for sustainable long-term growth.