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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 23 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 downward, 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 IMF’s 8% forecast is a result of the successful initiatives and advancements achieved during the program.
The Bank of Ghana has declared that, for 2024, it will stick to its end-of-year target range of 15 percent plus or minus two percent.
It also anticipates that when tight monetary policy tames underlying inflation risks, the disinflation process will continue.
Additionally, the Fund forecasted strong growth for Ghana in 2025 4.4% a considerable improvement above the 2.8% growth predicted for 2024.
The current account balance of Ghana, which gauges trade and financial activity in the nation, is expected to drop by -2.2 percent, according to the IMF.
In spite of this, the IMF continues to believe that Ghana’s economic growth is expected to significantly improve starting in the next year.
Source: Ghanatodayonline.com
