F


BANK OF GHANA
MONETARY POLICY REPORT


January 2025
The Monetary Policy Report highlights the economic and financial sector assessments that the Monetary Policy
Committee (MPC) considered prior to the policy decision during the 122nd meeting held in January 2025.
Monetary Policy Objective in Ghana
The primary objective of the Bank of Ghana is to ensure stability in the general level of prices which has been
defined as maintaining inflation over the medium term, within a band of 8± 2 percent. Without limiting the primary
objective, the Bank is also expected to support the general economic policy of the government, promote economic
growth and development, foster the effective and efficient operation of the banking and credit system; and
contribute to the promotion and maintenance of financial stability.

Monetary Policy Strategy
To achieve the objective of price stability, Bank of Ghana was granted operational independence to use whichever
policy tools it sees appropriate to stabilise inflation around the target band. The Bank of Ghana’s framework for
conducting monetary policy is Inflation Targeting (IT), in which the central bank uses the Monetary Policy Rate
(MPR) as the primary policy tool to set the monetary policy stance and anchor inflation expectations in the
economy.

The MPC Process
The MPC is a statutorily constituted body established by the Bank of Ghana (Amendment) Act, Act 2016 (Act 918)
to formulate monetary policy. The MPC consists of seven members – five from the Bank of Ghana (including the
Governor who is the Chairman) and two external members appointed by the Board of the Bank. The MPC meeting
dates are determined at the beginning of each year. The MPC meets bi-monthly to assess economic conditions
and risks to the inflation outlook, after which a policy decision is made on positioning the MPR. Each decision
signals a monetary policy stance of tightening (increase), easing (decrease) or no change (stay put). The policy
decision is arrived at by consensus with each member stating reasons underlying a preferred MPR decision.
Subsequently, the decision is announced at a press conference held after each MPC meeting and a press release
issued to financial markets and the public.

©Research Department, Bank of Ghana MPC Report – January 2025
www.bog.gov.gh
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Table of Contents
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Overview


The momentum in global economic growth observed at the beginning of 2024 was sustained throughout the
year. The January 2025 World Economic Outlook (WEO) report indicates an upward revision in growth from 3.2
percent in the October 2024 WEO to 3.3 percent. The better-than-expected global growth outturn in 2024 was
primarily due to strong growth in the US, a pickup of economic activity in China, and stability in Emerging Market
Economies, which together offset weaker growth in the Euro Area. Global growth is expected to remain stable in
2025, underpinned by low inflation, steady employment growth and a supportive monetary policy stance.

Global inflation continued its downward trend throughout 2024, as most central banks moved closer to
their targets. The ease in inflationary pressures was largely supported by subdued crude oil prices and the gains
from tighter monetary policy stances adopted earlier. However, there are signs of underlying inflationary pressures
in the services sector and tight labour market conditions. In the outlook, global headline inflation is forecast to
decline further in 2025 and 2026 as core inflation trends down, mainly from slower wage growth.

Global financial conditions eased somewhat in late 2024 but remained restrictive. Policy rates globally have
remained restrictive due to slower-than-expected disinflation in some regions, surging long-term bond yields in
advanced economies, and increasing uncertainty surrounding changes to US trade and immigration policies.
Looking ahead, financial conditions are expected to ease gradually as policy stances become more accommodative
and inflation cools off in the United States and in the Euro Area.

On the domestic front, economic activity was stronger, with higher-than-projected growth in the first three
quarters of 2024. The latest data from the Ghana Statistical Service showed that real GDP expanded at an annual
rate of 6.3 percent during the first three quarters of 2024, relative to 2.6 percent during the corresponding period
in 2023. Non-oil GDP grew by 6.2 percent, from 3.3 percent over the corresponding period last year. The strong
growth outturn was mainly driven by gold production in the industry sector.

Price developments in 2024 indicated a slowdown in the disinflation process, resulting mainly from food
price pressures. At the beginning of the year, inflation rose from 23.2 percent in December 2023 to 25.8 percent
in March 2024. Thereafter, it declined steadily to 20.4 percent in August, but has since risen to 23.8 percent in
December 2024, primarily due to food price increases.

The external sector position improved significantly in 2024 on account of an increased trade surplus and
lower capital outflows. The current account recorded a provisional surplus of US$3.8 billion, compared with a
surplus of US$1.4 billion in 2023, driven mainly by higher gold and crude oil exports, as well as strong remittance
inflows. Gross International Reserves (GIR) increased to a stock position of US$8.98 billion at the end of 2024
and was enough to cover 4.0 months of imports, exceeding targets under the IMF programme

The banking sector continues to be profitable, well-capitalized and liquid. Assets of the banking sector grew
by 33.8 percent in 2024. Capital Adequacy Ratio (CAR) with reliefs grew marginally to 14.0 percent in December
2024 from 13.9 percent in December 2023. However, CAR without reliefs rose to 11.3 percent in December 2024,
higher than the 8.3 percent recorded in December 2023. Profits went up in 2024 relative to 2023, but the pace of
growth slowed, resulting in the moderation of profitability indicators during the period. In the outlook, elevated
credit risk remained the main upside risk to the banking sector. The industry’s Non-Performing Loans (NPL) ratio
increased to 21.8 percent in December 2024, from 20.6 percent in December 2023.
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1. Global Economic Developments

1.0 Highlights
Global growth has remained robust, supported by the recovery of real incomes amid an ongoing process
of disinflation. The policy-easing cycle initiated by major central banks in Advanced Economies (AEs),
in response to declining inflation rates, has generally supported growth. While global growth is expected
to remain steady at 3.2 percent for 2024 and 2025, potential challenges such as the lagged effects of
past policy tightening, persistent geopolitical tensions and a resurgence of trade protectionist policies
present downside risks to the outlook. Global inflation continues to moderate, primarily driven by lower
energy inflation, easing labour cost pressures and the lagged effects of past monetary policy tightening.

1.1 Global Growth Developments
Global growth is expected to remain stable in 2025, underpinned by rising real incomes, steady
employment growth and less restrictive monetary policy. However, there are notable divergence across
countries. Strong economic activity in the US will be offset by weaker activity in the Euro Area. Growth
projections for the Euro Area are premised on persistent weakness in the manufacturing sector, on the
back of waning export demand and elevated interest rates. Growth is expected to remain steady in
Emerging Markets and Developing Economy (EMDEs), supported by global monetary easing,
recovering real incomes and improving domestic demand.

The IMF projects the global economy to grow by 3.3 percent in both 2025 and 2026. This represents an
upward revision of 0.1 percentage points, backed by stronger activity in the US, reflecting resilience in
consumption and the labour market. In the outlook, risks to growth remain tilted to the downside. A
surge in trade restrictions could lower investment, distort trade flows, and disrupt supply chains.
Heightened geopolitical tensions could disrupt global trade and commodity markets. Also, inflation
could prove more persistent than expected if trade policy shifts cause prices to rise and services inflation
remains elevated. Again, growth in major economies such as the US could be weaker than expected if
trade protectionism increases sharply and labour markets cool more quickly than envisaged.
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Table 1.1: Global Growth Projections (%)
Overview of the World Economic Outlook Projections
(Percent change)

Projections

World
3.2
3.3
3.3
Advanced Economies
1.7
1.9
1.8
United States
2.8
2.7
2.1
Euro Area
0.8
1.0
1.4
Germany
–0.2
0.3
1.1
France
1.1
0.8
1.1
Italy
0.6
0.7
0.9
Spain
3.1
2.3
1.8
Japan
–0.2
1.1
0.8
United Kingdom
0.9
1.6
1.5
Canada
1.3
2.0
2.0
Other Advanced Economies
2.0
2.1
2.3
Emerging Market and Developing Economies
4.2
4.2
4.3
China
4.8
4.6
4.5
India
6.5
6.5
6.5
Russia
3.8
1.4
1.2
Brazil
3.7
2.2
2.2
Mexico
1.8
1.4
2.0
Sub-Saharan Africa
3.8
4.2
4.2
Nigeria
3.1
3.2
3.0
South Africa
0.8
1.5
1.6
Source: IMF, WEO October 2024, Update


1.2 Global Price Developments
Global inflation continued its downward trend on the back of falling commodity prices and lagged
effects of policy tightening. In terms of major commodities, oil prices remained subdued in 2024 amid
ample supply and weakening global demand. There were renewed oil price pressures at the start of 2025
on supply concerns on the back of a temporary rollover of existing OPEC+ production curbs, increased
oil demand due to colder weather in the US and Europe, and renewed sanctions on Russia’s oil market.
However, global food prices have declined, with the FAO Food Price Index dipping by 0.5 percent in
December 2024, reflecting ample supply and weaker demand. Furthermore, underlying inflation has
continued to decline but at a slower pace, reflecting the persistence in services price inflation.

In the outlook, global headline inflation is forecast to decline further in 2025 and 2026, driven by cooling
core inflation, as services demand moderates due to easing labour markets and slower wage growth.
Consistent with this, inflation expectations over the short and medium term are broadly unchanged with
long-term inflation expectations remaining well anchored.
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Figure 1.1: Headline Inflation Rates (%)
Source: Bank of Gana, /Trading Economics


1.3 Global Financial Markets Developments
Global financial conditions tightened in late 2024 in EMDEs amid slower-than-expected disinflation in
some regions, uncertainty about shifting US trade policies, and moderating expectations for future US
policy rate cuts. There has been a divergence in policy decisions across central banks, reflecting
differences in the pace of disinflation. Despite ongoing rate cuts, long-term nominal bond yields in
advanced economies have risen sharply due to the resilience of the US economy and rising uncertainty
associated with policies of the new administration. The heightened uncertainty is weighing on equity
prices and affecting investor sentiment toward EMDEs, leading to fluctuations in portfolio inflows.

In the outlook, financial conditions are expected to ease gradually over the course of 2025. Monetary
policy in the US is expected to become gradually less restrictive as inflation continues to moderate. In
the Euro Area, real policy rates are likely to become somewhat accommodative by the end of 2025,
reflecting a more subdued economic outlook. However, there are risks on the horizon including the fact
that the US long-term bond yields continue to increase sharply amid resilient economic activity. Also,
rising uncertainty associated with intensifying protectionist policies and geopolitical conflicts could
force central banks to slow the pace of policy easing.
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Table 1.2: Monetary Policy Stance of Selected Central Banks
Country
Policy rate -
Previous (%)
Policy Rate
Current (%) Forecast
Inflation
November,

Inflation
December, 2024
Real rate
Infl Target
Overall
Fiscal
Deficit
(2023,%
of GDP)
GDP Growth
(Dec.2023)
Gross
Debt/GDP(2
023,%)
YTD
Depr/15th Jan

U.S

Euro Area

< 2%

UK

Japan

Russia
21.0
21.0


India

4±2%
8.2

-0.87
Brazil

4.5±1.5%
2.9
84.7
2.67
Turkey

5±2%

Malaysia

Indonesia


3.5% ± 1%
-1.6

39.6
-1.19
Chile

3±1%
-2.3
0.2
39.4
Ghana
27.0
27.0

23.8
3.2
8±2%

South Africa

Nigeria

Kenya

Zambia

Morocco


69.5
0.54
Angola

Egypt

7± 2%

Source: Growth Rate (World Bank); Debt/GDP (IMF) Policy Rates (Trading Economics)


1.4 Currency Markets
On the international currency market, the US dollar extended its appreciation to early 2025 amid
resilient economic activity and increasing global uncertainty with regards to US trade policies and
geopolitics. The stronger dollar is expected to put pressure on EMDE currencies.

In the interbank market, the cedi has made some gains in recent months on the back of increased Bank
of Ghana’s support from the gold purchase programme, remittances and mining inflows and to some
extent, the IMF inflows. The cedi will likely make some gains from the easing of election-related
demand, continuing reserve build-up and positive sentiment from the recent successful payments of
restructured debt. However, heightened global uncertainty may rally the dollar, which could weigh on
the Ghana cedi.

In the interbank market, the cedi depreciated by 19.2 percent, 17.8 percent and 13.7 percent against the
dollar, the pound and the euro, respectively, on a year-to-date basis. This is against depreciations of
27.8 percent, 31.9 percent and 30.3 percent, respectively, during the same period in 2023. Also, the
cedi was relatively more volatile during the first 10 transaction days in 2025 than during the same period
in 2024.
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Table 1.3: Interbank Exchange Rates
US$/GHC*
Monthly
Year-to-Date
depreciation/ap depreciation/ap
preciation
preciation
GBP/GHC*
Monthly
Year-to-Date
depreciation/ap depreciation/a
preciation
ppreciation
Euro/GHC*
Monthly
Year-to-Date
depreciation/ap depreciation/ap
preciation
preciation

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

Source: Bank of Ghana Staff Calculations

If we consider our major trade partners’ currency movements, then the cedi depreciated by 17.5 percent
in nominal trade weighted terms and 23.1 percent in forex transaction weighted terms on a year-to-date
basis in December 2024. This is against depreciations of 42.5 percent and 39.0 percent in nominal trade
weighted terms and nominal foreign exchange transaction weighted terms over the same period in 2023.

Table 1.4: Nominal Effective Exchange Rate

Month
2021=100
FXTWI
TWI
Monthly CHG(%)
FXTWI
TWI
Year-to-Date
FXTWI
(%)
TWI

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23


Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Source: Bank of Ghana Staff Calculations
Note: TWI and FXTWI are index measures of the value, in nominal terms, of the cedi relative to Ghana’s top three
trading currencies: the euro, the pound and the US dollar.
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In real bilateral terms, the cedi depreciated by 2.8 percent and 0.7 percent against the dollar and pound
sterling, respectively, but appreciated by 4.0 percent against the euro on a year-to-date basis in
December 2024. Comparatively, for the corresponding period in 2023, the cedi’s real exchange rate
depreciated by 16.2 percent, 23.2 percent and 19.4 percent against the dollar, pound sterling and euro,
respectively, over the same period in 2023.

Table 1.5: Real Bilateral Exchange Rate
Month
RER Index (Jan.2021=100)
EUR
GBP
USD
MONTHLY CHANGE (Index)
EUR
GBP USD
Year-to-Date (%)
EUR
GBP USD

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23


Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Source: Bank of Ghana Staff Calculations

Table 1.6 shows the real effective exchange rate movements of the cedi against the three major
currencies (i.e., US dollar, the euro and the pound). The cedi appreciated by 2.7 percent in real trade
weighted terms and depreciated by 2.2 percent in real forex transaction weighted terms on a year-to-
date basis in December 2024. This compares with depreciations of 19.3 percent and 16.6 percent for the
same period in 2023.
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Table 1.6: Real Effective Exchange Rate for Major Trade Partners
INDEX (2021=100)
RFXTWI
RTWI
MONTHLY CHG
RFXTWI
RTWI
Year-to-Date
RFXTWI
(%)
RTWI

Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23


Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Source: Bank of Ghana Staff Calculations


1.5 Global Economic Outlook and Risks
The Committee noted that global economic conditions broadly improved in 2024. Global inflationary
pressures eased gradually over the period, which has led to an easing monetary policy stance across
several countries. Consequently, global financial conditions are expected to ease gradually as policy
stances become more accommodative and inflation targets in Advanced Economies are met and
expectations anchored. These conditions are expected to result in improvements in investor sentiments
towards emerging market and developing economies. On top of the projected steady growth for 2025,
the international markets have priced in a much stronger US economy stemming from the policies to be
implemented by the new US administration. This has already instigated a stronger US dollar with
implications for emerging markets and developing economies, including Ghana. Complementary fiscal
and monetary policies will therefore have to be carefully set to prevent spillovers to the Ghanaian
economy
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2. External Sector Developments

2.0 Highlights
The country’s external sector improved further in 2024, ending the year with a strong current account
surplus. This development reflected higher gold export receipts, improved remittance flows, lower
capital outflows and higher foreign direct investment (FDI) flows and official disbursements. The robust
performance of the external sector was supported by policies such as the Domestic Gold Purchase
Programme, reforms in the remittances ecosystem, the debt standstill, and adherence to the IMF
programme, which helped to improve the capital and financial account.

2.1 Commodity Price Trends
Prices of Ghana’s primary exports (cocoa, gold, and crude oil) recorded a mixed performance on the
international commodities market in December 2024. Cocoa prices shot up by 34.1 percent to
US$10,869.14 per tonne in December 2024, from US$8,105.0 per tonne in November 2024, on the back
of reduced supplies in top-producers (such as Cote d’Ivoire) due to the adverse weather conditions.
Compared to a year earlier, cocoa prices have soared by 156.6 percent, mainly due to bad weather
conditions, black pod disease and inadequate fertilizers, which have combined to weaken supply.

Crude oil prices, on the other hand, moderated by 0.2 percent to settle at an average of US$73.18 per
barrel in December 2024, from US$73.36 per barrel in November 2024, due to easing concerns over
supply risks and the prospects of increased supply in 2025. Compared to a year earlier, crude oil prices
dipped by 5.3 percent, mainly due to weak demand from China.

Similarly, gold prices softened by 0.4 percent to US$2,41.45 per fine ounce in December 2024 from
US$2,651.70 per fine ounce in November 2024, owing to the strengthening of the US dollar. Compared
to a year earlier, gold prices increased by 30.0 percent in December 2024, from US$2,035.43 per fine
ounce in December 2023.

2.1.1 Commodity Price Index
The weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude
oil) increased in the month of December 2024. The index edged up to 220.71 in December 2024, from
199.74 in the previous month, representing an uptick of 10.5 percent. The increase was on account of
the spike in the cocoa sub-index, while the gold and crude oil sub-indices moderated during the period
under review. The cocoa sub-index increased sharply by 34.1 percent in December 2024, while the
crude oil and gold sub-indices declined by 0.2 percent and 0.4 percent, respectively.
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2.2 Trade Balance
Ghana’s trade balance recorded a strong surplus in 2024, increasing by 84.8 percent to US$4.98 billion
in December 2024 from US$2.69 billion in December 2023. The improved trade surplus stemmed from
a higher increase in exports relative to imports. Total exports increased by 21.1 percent to US$20.22
billion, largely driven by a robust increase in gold exports, supported by a marginal pickup in crude oil
exports, while cocoa exports slumped.

The value of gold exports rose by 53.2 percent to US$11.64 billion on account of increases in both the
volume and price of gold. The volume of gold exports increased by 23.7 percent to 5.10 million fine
ounces, largely on the back of increased output from the responsible and regulated small-scale gold
mines, coupled with the sustained output of the large-scale mines. The volume of gold export by small-
scale miners increased by 28.6 percent to 2.0 million ounces, while large scale gold production rose by
20.7 percent to 3.1 million ounces. The average realized price for gold also increased by 23.8 percent
to US$2,282.6 per fine ounce in December 2024 compared to US$1,843.1 per fine ounce in December
2023. Earnings from crude oil exports recorded a modest increase of 0.9 percent to US$3.87 billion,
due to a 3.3 percent increase in the volume of production, particularly from the Jubilee field, while the
price fell by 2.4 percent to US$79.8 per barrel.

In contrast, cocoa exports (beans and products) dropped by 21.2 percent to US$1.70 billion in December
2024, from US$2.15 billion in 2023. The sharp drop in the value of cocoa exports reflected the
challenges in the cocoa sector, including extreme weather conditions, diseases and smuggling.
Similarly, “other exports”, including non-traditional exports, declined by 3.2 percent to US$3.01 billion,
from US$3.11 billion during the same review period in 2023.
Figure 2.1: International Cocoa Prices (US$/metric tonnes)
Figure 2.1: International Cocoa Prices (US$/metric tonnes)
13,000.00

11,000.00

9,000.00

7,000.00

5,000.00

3,000.00

1,000.00


Source: Reuters
Figure 2.2: International Brent Crude Oil Prices (US$ per barrel)
Figure 2.2: International Brent Crude Oil Prices (US$ per barrel)
140.00

120.00

100.00

80.00

60.00

40.00

20.00

-


Source: Reuters
Figure 2.4: Commodity Price Index
Figure 2.4: Commodities Price Index
240.00


220.00

200.00

180.00

160.00

140.00

120.00


Source: BOG Staff Computations
Figure 2.3: International Gold Prices (US$ per ounce)


Source: Reuters
Jan-18
Jan-18
Feb-18
Feb-18
Mar-18
Mar-18
Apr-18
Apr-18
May-18
May-18
Jun-18
Jun-18
Jul-18
Jul-18
Aug-18
Aug-18
Sep-18
Sep-18
Oct-18
Oct-18
Nov-18
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Dec-18
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Jan-19
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Feb-19
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Apr-19
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Jun-19
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Oct-19
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Oct-20
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Jan-21
Jan-21
Feb-21
Feb-21
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Mar-21
Apr-21
Apr-21
May-21
May-21
Jun-21
Jun-21
Jul-21
Jul-21
Aug-21
Aug-21
Sep-21
Sep-21
Oct-21
Oct-21
Nov-21
Nov-21
Dec-21
Dec-21
Jan-22
Jan-22
Feb-22
Feb-22
Mar-22
Mar-22
Apr-22
Apr-22
May-22
May-22
Jun-22
Jun-22
Jul-22
Jul-22
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Aug-22
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Sep-22
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Oct-22
Nov-22
Nov-22
Dec-22
Dec-22
Jan-23
Jan-23
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Feb-23
Mar-23
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Oct-23
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Jan-24
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Feb-24
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Apr-24
May-24
May-24
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Oct-24
Oct-24
Nov-24
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Dec-24
Dec-24
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
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Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
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Sep-24
Oct-24
Nov-24
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Total imports, on the other hand, rose by 8.8 percent to US$15.24 billion in 2024, from US$14.01 billion
in the corresponding period of 2023, due to a pick-up in non-oil imports, while oil imports remained
broadly unchanged. Non-oil imports increased by 12.9 percent to US$10.76 billion, whereas oil imports
remained flat at US$4.48 billion during the period under review.

2.3 Current Account
The current account recorded a surplus of US$3.55 billion in 2024, representing a sharp increase of
152.0 percent over the surplus of US$1.41 billion recorded in 2023. The higher current account surplus
came on the back of the improved trade surplus and higher remittance inflows. Net remittance flows for
the review period increased by 34.1 percent to US$5.42 billion in 2024, from US$4.04 billion in 2023.
Net investment income payment and payment for services, however, increased by 44.0 percent and 14.9
percent, respectively, to US$3.0 billion and US$3.85 billion in the same reference period.

2.4 Capital and Financial Accounts
The capital and financial account for 2024 showed a significantly lower net outflow of US$588.0
million, from US$733.0 million in the corresponding period of 2023. The lower net capital outflows
came on the back of higher government loan disbursements, reduced amortizations, and lower portfolio
outflows.

Portfolio outflows, on net basis, amounted to US$39.0 million in December 2024, compared to
US$261.0 million in the same period in 2023, representing a decline of 85.0 percent. Government loan
amortization was also lower at US$388.0 million in December 2024, from US$575.0 million in
December 2023, on account of the debt standstill. Meanwhile disbursements, largely from the IMF and
the World Bank, increased by 72.5 percent to US$2.51 billion, from US$1.45 billion in December 2023.
Similarly, net foreign direct investment (FDI) showed an inflow of US$1.74 billion in 2024, an increase
of 32.7 percent from the US$1.31 billion recorded in the same period of 2023. “Other capital”, including
private capital, recorded a higher net outflow of US$2.67 billion, compared to an outflow of US$1.78
billion in the corresponding period of 2023.

The current account surplus, together with the reduced capital outflows, resulted in an overall Balance
of Payments (BOP) surplus of US$3.06 billion in 2024, compared to a surplus of US$518.0 million for
the same period in 2023.

2.5 International Reserves
Gross International Reserves (GIR) increased to a stock position of US$8.98 billion at the end of
December 2024, equivalent to 4.0 months of imports cover. Net International Reserves (NIR) also
increased by US$3.18 billion to US$6.38 billion at end-December 2024. Under the IMF programme,
there has been a reserve accumulation of US$1.89 billion at the end-December 2024, well above the
end year target of US$908 million. The higher build-up in the GIR was largely on account of the strong
performance of the Domestic Gold Purchase Programme.

2.6 External Sector Outlook
Initial baseline projections suggest a favourable outlook for the external sector in 2025. The improved
performance is projected to be driven by strong performance in the gold sector, higher remittance flows,
and high commodity prices. The sector is projected to improve further on the back of commitment to
implement policies and reforms under the IMF programme, which will help restore investor confidence
and improve FDI flows.
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The outlook for the prices of Ghana’s major export commodities remains mixed. Cocoa prices have
picked up in the first few weeks of 2025 and are projected to maintain the upward trajectory as supply
constraints persist, amid concerns about low production from the adverse weather outlook, illegal
mining activities and pest attacks on the bean in West Africa. The outlook for crude oil prices is expected
to remain pressured in 2025, with expectation of low demand from China and excess supply due to US
government’s policies on crude oil. Gold prices are projected to remain supported as a safe haven in
2025, on the back of pessimism about geopolitical developments including possible trade tensions
emanating from the expected increase in US tariffs and continuous government buying. For 2025, the
balance of payments surplus recorded in 2024 is projected to improve, driven by increased exports,
stronger remittance growth, and lower government external payments.

Table 2.1: Trade Balance (US$ million)

Jan - Oct

Jan - Dec

Jan - Dec

Jan - Dec

Abs Y/Y
Chg

Rel Y/Y
Chg
Trade Balance ( $'M)

Trade Bal (% GDP)

Total Exports ( $'M)

Gold ( $'M)

Volume (fine ounces)

Unit Price ($/fine ounce)

Cocoa Beans ( $'M)

Volume (tonnes)

Unit Price ($/tonne)

Cocoa Products ( $'M)

Volume (tonnes)

Unit Price ($/tonne)

Crude Oil ( $'M)

Volume (barrels)

Unit Price ($/bbl)

Other Exports

o/w Non-Tradional Exports

Total Import ( $'M)

Non-Oil

Oil and Gas

of which: Products

Crude Oil ( $'M)

Volume (barrels)

Unit Price ($/bbl)

Gas ( $'M)


Volume (MMBtu)

Unit Price ($/mmBtu)


Source: Bank of Ghana
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3. Real Sector Developments

3.0 Highlights
Economic activity for the first three quarters of 2024 was robust, with a higher-than-projected growth
outturn. Growth in the fourth quarter of 2024 was also expected to remain firm. This is supported by
the latest high frequency real sector indicators, which point to a sustained pickup in economic activity
in November 2024. Consumer and business confidence also increased, in line with improving
macroeconomic conditions.

3.1 Economic Growth
The latest data from the Ghana Statistical Service showed that real GDP expanded at an annual rate of
6.3 percent during the first three quarters of 2024, relative to 2.6 percent during the corresponding period
in 2023. Non-oil GDP also grew by 6.2 percent from 3.3 percent over the same comparative period.
The strong growth outturn was mainly driven by gold production in the industry sector.

Figure 3.1: Quarterly Oil and Non-Oil GDP Growth (%)
Source: Ghana Statistical Service

3.2 Trends in Real Sector Indicators

Consumer Spending
Consumer spending, proxied by domestic VAT collections and retail sales, posted a mixed performance
in November 2024, compared with the corresponding period in 2023. Domestic VAT collections
declined by 19.2 percent on a year-on-year basis to GH¢1.60 billion, from GH¢1.98 billion.
Cumulatively, total domestic VAT for the first eleven months of 2024 went up by 20.7 percent to
GH¢15.48 billion, compared with GH¢12.83 billion for the corresponding period of 2023.

Retail sales increased by 64.6 percent (year-on-year) to GH¢317.86 million in November 2024, up from
the GH¢193.12 million recorded in the same period in 2023. On a month-on-month basis, retail sales
improved by 32.6 percent in November 2024, from GH¢239.65 million in the preceding month. In
cumulative terms, retail sales for the first eleven months of 2024 went up by 31.6 percent. The relative
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improvement in retail sales, year-on-year, was due to increased household consumption during the
review period.

Manufacturing Activities
Activities in the manufacturing sub-sector, gauged by trends in the collection of direct taxes and private
sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension
Scheme (Tier-1), posted a mixed performance in November 2024. Total direct taxes collected decreased
by 19.9 percent (year-on-year) to GH¢4.71 billion in November 2024, relative to GH¢5.88 billion
recorded in a similar period in 2023. Cumulatively, total direct taxes collected for the first eleven months
of 2024 went up by 34.5 percent to GH¢59.74 billion, from GH¢44.43 billion for the same period in
2023. In terms of contributions of the various sub-tax categories, income tax (PAYE and self- employed)
accounted for 42.4 percent, corporate tax accounted for 34.5 percent, while “other tax sources”
contributed 23.1 percent.

Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 33.8
percent in year-on-year terms to GH¢447.19 million in November 2024, from GH¢334.18 million
collected during the corresponding period in 2023. Cumulatively, for the first eleven months of 2024,
the contribution grew by 27.9 percent to GH¢4.67 billion, relative to GH¢3.65 billion recorded in the
same period in 2023.

Construction Sector Activities
Activity in the construction sub-sector, proxied by the volume of cement sales, improved marginally by
2.1 percent (year-on-year) in November 2024 to 236,442.97 tonnes, from 231,571.37 tonnes recorded
in the same period of 2023. On a month-on-month basis, total cement sales remained largely unchanged
compared with the 237,385.60 tonnes recorded in October 2024. Cement sales for the first eleven
months of 2024 went up by 7.5 percent to 2,535,491.78 tonnes, from 2,358,386.77 tonnes for the same
period of 2023. The relative improvement in total cement sales, year-on-year, was due to an uptick in
construction activities during the review period.

Vehicle Registration
Transport sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing
Authority (DVLA), improved by 45.5 percent to 10,574 in November 2024, from 7,268 vehicles
registered during the corresponding period of 2023. Cumulatively, vehicles registered by the DVLA
within the first eleven months of 2024 increased by 18.2 percent to 160,267, from 135,544 recorded in
the same period of 2023.

Industrial Consumption of Electricity
Industrial consumption of electricity declined by 6.5 percent in November 2024 to 289.27 gigawatts, as
against 309.41 gigawatts recorded for the corresponding period in 2023. In cumulative terms, electricity
consumed by industries for the first eleven months of 2024 decreased by 6.0 percent to 3,103.03
gigawatts, from 3,301.36 gigawatts for the corresponding period of 2023.

Passenger Arrivals
Passenger arrivals improved by 5.5 percent in year-on-year terms to 109,929 in November 2024, up
from 104,157 arrivals recorded a year ago. On a month-on-month basis, passenger arrivals remained
largely unchanged compared with the 110,407 recorded in October 2024. For the first eleven months of
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2024, there were 1,162,028 arrivals recorded at the international airport and the land borders, compared
with 1,019,841 for the corresponding period in 2023, representing a growth of 13.9 percent.

Ports and Harbours Activity
International trade at the country’s two main harbours (Tema and Takoradi), as measured by laden
container traffic for inbound and outbound containers, improved during the period under review. Total
container traffic increased by 15.0 percent, year-on-year, to 66,382 in November 2024, up from 57,738
for a similar period in 2023. In cumulative terms, total container traffic for the first eleven months of
2024 went up by 14.8 percent to 655,439 compared with 570,711 for the corresponding period of last
year.

3.3 Labour Market Activity

Private Sector Pension Contributors
Total number of private sector SSNIT contributors, which partially gauges employment conditions,
improved marginally by 1.9 percent to 1,034,932 in November 2024, compared with 1,015,696 for the
same period in 2023. Cumulatively, for the first eleven months of 2024, the total number of private
sector contributors increased by 5.3 percent to 11,388,599 from 10,811,204 recorded over the
corresponding period in 2023.

Advertised Jobs
The number of jobs advertised in selected print1 and online2 media, which partially gauges labour
demand in the economy, decreased in December 2024 relative to what was observed in the
corresponding period a year ago. In total, 2,725 job adverts were recorded as compared with 2,925 for
the same period in 2023, indicating a decline of 6.8 percent (year-on-year). Similarly, on a month-on-
month basis, the number of job vacancies in December 2024 dipped by 5.0 percent from the 2,867 jobs
advertised in November 2024. Cumulatively, for 2024, the total number of advertised jobs went up by
6.3 percent to 35,810 from 33,692 recorded in 2023.

3.4 Composite Index of Economic Activity
The Bank’s updated real Composite Index of Economic Activity (CIEA) recorded an annual growth of
2.3 percent in November 2024, compared to a growth of 9.6 percent for the corresponding period of
2023. International trade activities, increased credit to the private sector by banks, construction activities
and tourist-related spending contributed to the improvement in economic activity during the period.

3.5 Consumer and Business Surveys
The latest confidence surveys conducted in December 2024 showed an improvement in both consumer
and business confidence. The Consumer Confidence Index improved to 90.2 in December 2024 from
86.1 in October 2024, largely on account of optimism about future economic conditions. Similarly, the
Business Confidence Index increased to 96.6 from 92.8 in the same comparative period as firms met
their short-term targets and expressed positive sentiments about company and industry prospects in line
with improving macroeconomic conditions. Ghana’s Purchasing Managers’ Index (PMI), however,
declined to 49.4 in December 2024 from 52.5 in the previous month, largely due to a slowdown in
firms’ operations during the election period.


1 The Daily Graphic newspaper was used to represent print media because it is the most widely circulated daily in Ghana.
2 These are job adverts posted on the websites of the 10 main online job advertising/employment companies in Ghana.
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Figure 3.2: High Frequency Economic Indicators


SSNIT Contributions from Private Sector


Panel 1:
Ghana's Leading Indicators of Economic Activity
...Domestic VAT collections and retail sales improved in November 2024


...Labour market conditions softened in November 2024 relative to October

...Labour hiring conditions, proxied by the number of private sector
workers contributing to SSNIT, remained largely unchanged...


Nov-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
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Million, USD


GWh


Billion, GHC


Number of advertised jobs


Percent, y-o-y


Percent, y-o-y
Contribution to Real CIEA growth


-8
-16
Cement Sales (Tons)
SSNIT Contr by Pte Sector
Industrial Cons of Electricity
Imports
Dom VAT
Port Activity
Exports
DMB's Credit to Pte Sector
Passenger Arrivals
Real CIEA growth (%)
Panel 2:
Ghana's Leading Indicators of Economic Activity


...Commercial banks' credit to the private sector improved in November 2024
relative to the pevious month...

online media), dipped in December 2024...
...On a year-on-year basis, the real CIEA grew by 2.3 percent in November 2024,

from the Private Sector, Port Activity, DMB’s Credit to the Private Sector, Exports,

Source: Bank of Ghana, Various Stakeholders
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
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Billion, GHC


Vehicle Registration
Number of vehicles


Index


Index


Annual sectoral real GDP growth rate, y/y
10.4
Percent


4.3 5.0
3.2
-2.5


-2.0

Agricuture
Industry
Services
Panel 3:
Ghana's Leading Indicators of Economic Activity


...Real Oil and Non-Oil GDP grew by 7.2 percent and 7.7 percent respectively

...The 2024Q3 growth outturn was largely driven by the industry sector, which grew

Annual real GDP growth rate, y/y
7.2 7.7
2.2 2.4
Percent


Oil GDP
Non-Oil GDP
Source: Bank of Ghana, Various Stakeholders
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
2023Q1
2023Q2
2023Q3
2023Q4
2024Q1
2024Q2
2024Q3
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
2023Q1
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
2023Q2
2023Q3
2023Q4
2024Q1
2024Q2
2024Q3
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4. Monetary and Financial Developments


4.0 Highlights
In December 2024, there was a decline in the growth of broad money supply (M2+) relative to the
corresponding period of 2023. Annual growth in broad money supply (M2+) decreased to 31.9 percent
in December 2024, relative to 38.7 percent in December 2023. The decline in M2+ growth was
attributable to a slower pace of growth in all the components – demand deposits, savings and time
deposits, and foreign currency deposits – except for currency held by the public, which increased over
the same comparative period. Private sector credit growth continued to increase towards pre-2022
macroeconomic crisis levels, albeit slowly. Nominal growth in the private sector credit increased to
26.3 percent in December 2024 from 10.7 percent recorded in the corresponding period of 2023. In
real terms, credit to the private sector increased relative to a contraction recorded over the same
comparative period in the previous year.

4.1 Developments in Monetary Aggregates

Money Supply
In December 2024, there was a decline in the growth of broad money supply (M2+) relative to the
corresponding period of 2023, mainly on the back of significant moderation in the pace of growth in
Net Domestic Assets (NDA) of depository corporations, while expansion in Net Foreign Assets (NFA)
remained robust. Annual growth in M2+ decreased to 31.9 percent in December 2024, relative to 38.7
percent in the corresponding period of 2023. The contribution of NDA to the growth in M2+ decreased
to 5.6 percent from 20.9 percent, while the contribution of NFA increased to 26.3 percent from 17.8
percent, over the same comparative period.

Sources: Bank of Ghana
Figure 4.1a: M2+ Growth and its Sources
(% Contributions)

Figure 4.1b: Banking Sector NDA and its
Sources (% Contributions)
100.00
0.00
NCG
Claims on Priv. Sect. (Incl. PE's)
BOG OMO Steril. Acc.
OIN
NDA
-100.0
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Figure 4.2: M2+ and its Components (% Contributions)
Source: Bank of Ghana

In terms of annual growth rates, NDA expanded by 6.1 percent percent in December 2024, relative to
19.8 percent in December 2023, while the NFA expanded by 302.6 percent relative to 310.4 percent,
over the same comaprative period.

The decline in the contribution of the NDA to the growth of M2+ was mainly driven by cocntractions
in the Net Claims on Government (NCG) and the Other Items (Net) (OIN), moderated by expansion in
claims on private and public sector credit and a slowdown in OMO sterilization. Claims on private and
public sector continued to expand in the December 2024, which reflected mainly in an increase in
domestic currency credit.

Analysis of the components of M2+ showed that the decline in the growth in M2+ reflected in decreased
growth in demand deposits, savings and time deposits, and foreign currency deposits in December 2024
relative to same period in 2023; growth in currency outside banks, however, increased significantly.

4.2 Reserve Money
Reserve money expanded significantly in 2024, supported by considerable growth in the Net Foreign
Assets (NFA) of the Central Bank, mainly on account of inflows from the Gold for Reserve (G4R)
Programme, forex purchases, and proceeds from the IMF Extended Credit Facility (ECF). The growth
in reserve money was also underpinned by the dynamic Cash Reserve Requirement (CRR), which
induced an increase in reserves of the deposit money banks to shore up regulatory reserves. Annual
growth in reserve money increased considerably to 47.8 percent in December 2024, from a growth of
29.7 percent recorded in the corresponding period of 2023.

The NDA of the Central Bank, however, declined on the back of contractions in Claims on Deposit
Money Banks (DMBs), and decrease in Net Claims on Government, partly reflecting a build-up in
Government’s deposit during the review month. The contribution of NDA to the growth in RM
increased marginally to negative 1.64 percent in December 2024, compared to negative 1.93 percent
recorded in December 2023. Similarly, the contribution of the NFA to the growth in RM increased to
49.41 percent, relative to a growth of 31.58 percent over the same comparative period in 2023.


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Figure 4.3a: RM Growth and Contribution
from NFA and NDA (%)

NDA
-50.0
NFA
RM growth (y-on-y)
-100.0

Figure 4.3b: BOG NDA and Its Sources
(% Contributions)
200.0
NCG
NC_DMBs
OMO Ster. A/c
150.0
OIN
NDA


Source: Bank of Ghana

4.3 Deposit Money Banks Credit Developments
DMBs’ credit to the private sector and public institutions increased by GH¢18.53 billion (24.06%) in
December 2024, compared to an increase of GH¢7.01 billion (10.01%) recorded in December 2023.
The increase in credit flows was mainly due to expansion of credit to the private sector. Credit to the
private sector increased by GH¢18.56 billion (26.31%) in December 2024, compared to an increase of
GH¢6.81 billion (10.68%) recorded in the corresponding period of 2023. The increased flow of credit
to the private sector was on the back of increase in domestic currency credit, underpinned by a pickup
in real sector activities.

Private sector credit accounted for 100.17 percent of the flow in total outstanding credit in December
2024, relative to 97.10 percent recorded in the corresponding period of 2023. The top five sectors with
significant shares of credit flows were: services (27.25%); commerce and finance (22.41%); import
trade (19.29%); manufacturing (10.34%); and agriculture, forestry and fisheries sectors (8.68%)
.
Outstanding credit to the private sector at the end of December 2024 was GH¢89.12 billion, compared
with GH¢70.56 billion recorded in December 2023. In real terms, credit to the private sector increased
by 2.01 percent, relative to 10.16 percent contraction recorded over the same period in 2023. Growth in
real private sector credit remained above its trend during the review month.
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4.4 Money Market Developments
Interest rates broadly showed downward trends at the short-end of the money market on year-on-year
basis. The 91-day and 182-day Treasury bill rates decreased to 27.73 percent and 28.43 percent,
respectively, in December 2024, from 29.39 percent and 31.70 percent in the corresponding period of
2023. The Interbank Weighted Average Rate (IWAR) decreased to 27.03 percent in December 2024,
from 30.19 percent in December 2023, reflecting the transmission of the reduction in the Monetary
Policy Rate to the interbank market. Similarly, the average lending rates of banks declined marginally
to 30.25 percent in December 2024, from 33.75 percent recorded in the corresponding period of 2023,
reflecting the pass-through effect of declines in the rates on the wholesale funds market.


Source: Bank of Ghana
Figure 4.4a: Sectoral Shares in Credit to the
Private sector (%)
Dec-23
Dec-24

RGPSC
Trend
13.00
8.00
Figure 4.4b: Growth in Real Private Sector
Credit (RGPSC) vs. Trend

Figure 4.6: Yield Curve (% Year-on-Year)
37.00
Dec-23
Dec-24

Inter-Bank rate
Inflation
91-Day T-bill ra5te2.00
MPR
57.00
Figure 4.5: MPR, Interbank and T-bill Rates
and Inflation (%)
91-Day
182-Day
364-day
2-year
3-year
5-year
6-year
7-year
10-year
15-year
20-year
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4.5 Stock Market Developments
The Ghana Stock Exchange Composite Index (GSE-CI) increased to 4,888.53 points in December 2024
from 3,130.24 points recorded in the corresponding period of 2023. This translates into a year-on-year
gain of 56.2 percent in December 2024 compared to a growth of 28.1 percent in December 2023. The
robust performance of the GSE-CI is underpinned by improved investor appetite, driven by significant
recovery in the profitability of listed financial institutions and improved liquidity of that segment of the
market. The GSE-CI has also been boosted by the limited investment options on the domestic markets
on account of the Domestic Debt Exchange Programme (DDEP). The main sectors that contributed to
the gains recorded by the GSE-CI were food and beverages, manufacturing, distribution, finance, and
ETFund.

Table 4.1: Performance of Ghana Stock Exchange
Changes
Y-O-Y
Y-T-D
Oct-22 Nov-22
Dec-22 Nov-23 Dec-23
Feb-24 Mar-24
Jun-24 Sep-24
Oct-24
Nov-24
Dec-24

GSE CI

GSE FI

Market Capitalization
64727.18 64821.04 64507.32 74234.27 73893.17 75070.11 77701.17 85096.58 99101.87 100150.22 108368.85 111356.09 14.55 50.70
50.70
Source: Ghana Stock Exchange and Bank of Ghana Staff Calculations

The GSE-Financial Stocks Index (GSE-FI) closed at 2,380.79 points, reflecting a year-on-year gain of
25.20 percent, compared to a loss of 7.36 percent over the corresponding period in 2023. The gain in
the GSE-FSI was mainly on the back of improved profitability of listed financial institutions, following
sustained periods of losses induced by the impact of the DDEP.

Source: Bank of Ghana

Total market capitalisation of the GSE at the end of December 2024 was GH¢111.36 billion,
representing a year-on-year growth of 50.70 percent (GH¢37.46 billion), compared with a growth of
14.55 percent (GH¢9.39 billion) in December 2023. The increase in market capitalization was mainly
driven by appreciation in share prices, underpinned by renewed investor confidence, particularly in the
mining, IT, and finance sectors. This was also supported by the issuance of new shares by CAL Bank
and ADB during the reference period.
Figure 4.6a: GSE Composite Index
Source: Bank of Ghana
Figure 4.6b: GSE Financial Stocks Index

Source: Bank of Ghana

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4.6 Conclusion
In December 2024, there was a decline in the growth of broad money supply (M2+) relative to the
corresponding period of 2023, mainly on the back of significant moderation in the pace of growth in
Net Domestic Assets (NDA) of depository corporations, while expansion in Net Foreign Assets (NFA)
remained robust. Reserve money expanded significantly in 2024, supported by considerable growth in
the Net Foreign Assets (NFA) of the Central Bank. Credit to the private and public sector expanded on
the back of an increase in domestic currency credit, supported by improvements in real sector activities.
Money market rates broadly trended downwards at the short-end of the primary market, on year-on-
year basis. On the interbank market, the Interbank Weighted Average Rate (IWAR) declined, reflecting
the transmission of the reduction in Monetary Policy Rate to the interbank market. Similarly, the
average lending rates of banks declined marginally, reflecting the pass-through effect of declines in the
rates on the wholesale funds market. In the capital market, the GSE Composite Index (GSE-CI) recorded
an increased year-on-year gain in December 2024 relative to the corresponding period in 2023.
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5. Banking Sector Developments

5.0 Highlights
The banking sector’s performance in 2024 signalled the sector was continuing on the path to recovery
that began in 2023 after the impact of the Domestic Debt Exchange Programme (DDEP). The industry’s
balance sheet was generally robust, with the strong growth in assets in December 2024 funded
principally by significant growth in total deposits, bank borrowings and shareholder’s funds. Although
profitability within the banking sector moderated due to slowdown in growth in major income handles,
the banking industry remained profitable in 2024. The profit-before-tax (PBT) and profit-after-tax
(PAT) for 2024 were higher than 2023.Financial Soundness Indicators (FSIs) for the banking sector
remained broadly positive with improvements in solvency, liquidity and efficiency indicators in
December 2024 relative to December 2023. Banks however, reported a decline in profitability
indicators on the back of the slowdown in growth in PBT and PAT. Furthermore, the banking industry’s
Non-Performing Loans (NPL) ratio picked up in 2024 relative to 2023 on account of higher growth in
the NPL stock relative to the growth in loans and advances. Broadly, the outlook for the banking sector
remains stable and sound, contingent on banks’ adherence to recapitalisation strategies, profits
rebounding, and enforcement of strict credit underwriting standards

5.1 Banks’ Balance Sheet
Total assets of the banking industry grew by 33.8 percent (year-on-year) to GH¢ 367.8 billion as at end-
December 2024, higher than the 29.7 percent growth recorded in December 2023. Foreign assets picked
up strongly by 87.9 percent in December 2024, from 61.9 percent in December 2023, while domestic
assets expanded by 28.6 percent in December 2024, relative to 27.3 percent growth a year ago. The
share of foreign assets in total assets consequently jumped from 8.7 percent to 12.2 percent, while the
share of domestic assets declined from 91.3 percent to 87.8 percent.

In terms of components, growth in investments moderated in 2024 relative to 2023 on account of the
decline in rates on the money market during the review period. Investments grew by 12.9 percent to
GH¢113.1 billion in December 2024 as against a growth of 47.5 percent in December 2023. The
slowdown in growth in investments reflected in growth in short-term investments which moderated to
9.1 percent in December 2024, down from 133.8 percent growth observed in December 2023 on account
of the decline in rates on the money market. Long-term investments also grew by 15.4 percent in
December 2024 relative to 16.8 percent growth realised in December 2023.

Credit growth continued to trend upwards in 2024, reflecting the observed rebound in economic activity.
Gross loans and advances grew by 24.1 percent to GH¢95.5 billion at end-December 2024, up from
10.9 percent in December 2023. Growth in net loans and advances (gross loans adjusted for provisions
and interest in suspense) also jumped to 21.0 percent at end-December 2024, up from 9.4 percent over
the corresponding period in 2023.

Deposits remained the main source of funding for the banking sector, growing by 28.8 percent to
GH¢276.2 billion in December 2024 from GH¢214.5 billion in December 2023, driven mainly by a
strong pickup in domestic deposits.

Borrowings also grew strongly by 85.9 percent to GH¢27.9 billion in December 2024, following a
contraction of 20.1 percent recorded a similar period in 2023.
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The industry’s shareholders’ funds position, which weakened in December 2022 because of the
substantial impairments on the DDEP restructured bonds, continued to improve following the rebound
in banks’ profits in 2023 and 2024 and the on-going recapitalisation effort of the sector. Consequently,
shareholders’ funds grew by 36.6 percent to GH¢39.9 billion as at end-December 2024, relative to a
59.0 percent growth in December 2023.

Overall, the balance sheet of the banking industry suggested an improved performance of the industry
in December 2024 on the back of increased liquidity flows from deposits, borrowings and shareholders’
funds relative to the situation in 2023.

Table 5.1: Key Developments in DMBs' Balance Sheet
Dec-23
(GH ¢'million)
Oct-24
Dec-24
Y-on-Y Growth (%)
Dec-23
Oct-23
Dec-24
Shares (%)
Dec-23
Dec-24
TOTAL ASSETS

A. Foreign Assets

B. Domestic Assets

Investments

i. Bills

ii. Securities

Advances (Net)

of which Foreign Currency

Gross Advances

Other Assets

Fixed Assets

TOTAL LIABILITIES AND CAPITAL

Total Deposits

of which Foreign Currency

Total Borrowings

Foreign Liabilities

i. Short-term borrowings

ii. Long-term borrowings

iii. Deposits of non-residents

Domestic Liabilities

i. Short-term borrowing

ii. Long-term Borrowings

iii. Domestic Deposits

Other Liabilities

Paid-up capital

Shareholders' Funds

Source: Bank of Ghana

5.1.1 Asset and Liability Structure
The asset structure of the industry’s balance sheet in December 2024 reflected banks’ preference for
less risky assets. Cash and bank balances was the largest component of total assets with its share
improving to 38.7 percent in December 2024 from 30.7 percent in December 2023, following the
implementation of the dynamic cash reserve requirements in April 2024. The share of investments
(comprising bills, securities, and equity) in total assets, however, declined to 30.7 percent in December
2024 from 36.4 percent in December 2023 on account of the moderation in growth in investments.
Similarly, the proportion of net advances in total assets declined to 21.5 percent in December 2024 from
23.8 percent in 2023 while the share of non-earning assets (fixed assets and other assets) reduced to 9.0
percent from 9.1 percent during the same period under review.

On the liability side, the share of deposits in banks’ liabilities and shareholders’ funds decreased to 75.1
percent in December 2024 from 78.0 percent in December 2023, reflecting the slowdown in deposit
growth in 2024. The increase in borrowings however, translated into an increased share of 7.6 percent
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in December 2024 from 5.5 percent in December 2023. The proportion of shareholders’ funds in banks’
total funding also improved to 10.8 percent in December 2024 from 10.6 percent a year earlier, while
the share of other liabilities rose to 6.3 percent from 5.9 percent during the same comparative period.

Figure 5.1: Developments in Banks’ Balance Sheet & Asset Quality


Source: Bank of Ghana

5.1.2 Share of Banks’ Investments
Long-term securities constituted the largest component of banks’ investment portfolios, with its share
increasing to 59.3 percent in December 2024from 58.0 percent in December 2023. The share of bills
(short-term debt instruments), however, declined to 40.3 percent in December 2024 from 41.7 percent
in December 2023 in line with the moderation in growth recorded during the reference period. The share
of equity investments remained negligible and was flat at 0.4 percent during the period under review.
Asset Structure of Banks (%)


Dec-21
Dec-22
Dec-23

Oct-24
Dec-24


Liability Structure of Banks (%)


Dec-21
Dec-22
Dec-23
Oct-24
Dec-24

Components of Banks' Investments (%
share)


Dec-22
Dec-23


Oct-24

Dec-24


Components of Banks' Credit Portfolio (%)

Distribution of Credit by Sector (%)


Dec-24


Dec-23
NPL ratio in each Sector (%)


Dec-24


Dec-23
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5.2 Credit Risk
The industry’s asset quality deteriorated in December 2024, relative to December 2023, reflected in a
rise in the non-performing loan (NPL) ratio and the NPL stock during the review period.

5.2.1 Credit Portfolio Analysis
The stock of gross loans and advances increased by 24.1 percent to GH¢95.5 billion in December 2024,
relative to a growth of 10.8 percent in December 2023, reflecting increases in private sector credit.
Private sector credit (comprising credit to private enterprises and households) grew by 26.3 percent to
GH¢89.1 billion in December 2024, as against a growth of 12.9 percent in the previous year. However,
public sector credit contracted further by 0.5 percent to GH¢6.4 billion at end-December 2024, after the
initial decline of 8.4 percent in December 2023. Consequently, the share of private sector credit in total
credit inched up marginally to 93.3 percent 2024 in December, from 91.6 percent in December 2023,
while the share of public sector declined to 6.7 percent in December 2024, from 8.4 percent a year
earlier.

In terms of the distribution of credit by sectors, the services sector remained the largest recipient of the
industry’s credit, accounting for a share of 31.7 percent at end-December 2024 (down from 33.1 percent
in December 2023), followed by the commerce and finance sector with a share of 27.0 percent (up from
22.8 percent in December 2023). The share for the manufacturing sector declined marginally to 10.5
percent in December 2024, from 10.7 percent in December 2023. These three sectors constituted 69.3
percent of total credit in December 2024, compared with 66.6 percent in December 2023. The mining
and quarrying sector remained the lowest recipient of total credit, with a share of 2.8 percent in
December 2024, same as recorded a year ago.

5.2.2 Off-Balance Sheet Transactions
Off-balance sheet transactions (largely trade finance and guarantees) went up during the review period.
Banks’ contingent liabilities rose by 6.2 percent to GH¢24.0 billion as at end-December 2024, from
GH¢22.5 billion as at end-December 2023, representing a year-on-year growth of 17.0 percent. In
relative terms, however, contingent liabilities as a percentage of total liabilities declined marginally to
7.3 percent in December 2024, from 9.2 percent in December 2023.

5.2.3 Asset Quality
Asset quality risks were elevated in December 2024, reflecting the lingering impact of the 2022
macroeconomic challenges on the banking sector. The industry’s NPL ratio increased to 21.8 percent
in December 2024, from 20.7 percent in December 2023. Similarly, the NPL ratio adjusted for the fully
provisioned loan loss category inched up from 8.4 percent to 8.5 percent during the same comparative
period. The NPL stock increased by 31.4 percent to GH¢20.8 billion in December 2024, relative to a
growth of 37.4 percent recorded in December 2023.

Decomposition of the NPLs showed that the private sector accounted for the most non-performing
loans, due to its dominant share of total credit. The proportion of NPLs attributable to the private sector
increased to 96.2 percent in December 2024, from 91.6 percent in December 2023, while that of the
public sector declined to 3.8 percent, from 6.9 percent a year earlier.

The increase in the industry NPL ratio year-on-year reflected the deterioration in loans in the
transportation, storage and communication, manufacturing and services sectors. The NPL ratio in the
transportation, storage and communication sector increased from 32.7 percent in December 2023 to
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49.1 percent in December 2024, while NPL ratios in the manufacturing and services sectors increased
from 12.6 percent and 15.8 percent to 19.3 percent and 18.0 percent, respectively. All other sectors
recorded improvements in asset quality during the review period.

5.3 Financial Soundness Indicators
The financial soundness indicators in December 2024 were broadly positive following improvements
in solvency, liquidity and efficiency indicators. Profitability and asset quality indicators, however,
moderated during the review period.

Figure 5.2: Key Financial Soundness Indicators


Source: Bank of Ghana

5.3.1 Liquidity Indicators
The industry’s liquidity position remained strong following increases in core and broad liquidity
measures during the review period. The ratio of core liquid assets (mainly cash and due from banks) to
total deposits increased to 51.5 percent in December 2024 from 39.3 percent at end-December 2023.
Similarly, the ratio of core liquid assets to total assets increased from 30.7 percent to 38.7 percent over
the same comparative period. The increases in the core liquidity measures reflect, in part, the upward
revision in the cash reserve ratio during the year. Despite the moderation in the growth of banks’
holdings in short-term investments, the ratio of broad liquid assets to total deposits increased from 85.9
percent to 92.3 percent while the ratio of broad liquid assets to total assets increased from 67.0 percent
to 69.3 percent during the review period.

5.3.2 Capital Adequacy Ratio
The industry’s solvency position, measured by the Capital Adequacy Ratio (CAR) was 11.3 percent in
December 2024, compared to 8.3 percent a year ago, higher than the revised prudential minimum of 10
percent. This improvement in the solvency of the banking sector was due to the rebound in profitability
Solvency %

Dec-23
Feb-24
Apr-24
Jun-24
CAR (with Reliefs)
Aug-24
Oct-24
Dec-24
RWA/Total Assets
CAR (w/o Reliefs)
140.0
Efficiency Indicators (%)
18.2
120.0


Dec-21
Cost to income
Cost to total assets (RHS)
Dec-22
Dec-23
Dec-24
Operational Cost to gross income
Operational Cost to total assets (RHS)
Asset Quality

Dec-21
Dec-22
Dec-23
Oct-24
Dec-24
SUB-STD (GH¢m)
Adjusted NPL Ratio (%)
DOUBTFUL (GH¢m)
NPL Ratio (% Right Axis)
LOSS (GH¢m)

Profitability (%)
40.0


4.5
5.0
-3.8

Dec-21
Dec-22
Dec-23
Dec-24


(30.0)
Return On Equity (%) after tax
Return On Assets (%) before tax
-25.5
5.4
34.2
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across the banking sector and the recapitalisation efforts by undercapitalised banks. As part of reliefs to
minimise the impact of the DDEP, banks were allowed to spread derecognition losses on the
restructured bonds till the end of 2025. When the DDEP regulatory reliefs are considered, the CAR
increases to 14.0 percent in December 2024, compared to 13.9 percent in December 2023.

5.3.3 Profitability
Profitability of the banking sector increased in 2024 relative to the outturn in 2023, although the pace
of growth moderated. The industry recorded profit-after-tax (PAT) of GH¢10.4 billion for the year 2024
compared to GH¢8.3 billion in 2023. However, growth in PAT moderated to 26.2 percent in December
2024, from 224.6 percent in the previous year when the sector recovered from the DDEP-related losses.
Similarly, profit-before-tax (PBT) recorded a growth of 24.4 percent in December 2024, relative to a
growth of 267.1 percent in December 2023.

Apart from fees and commissions, which recorded a higher growth rate in 2024 relative to 2023, all
income lines grew but at slower pace in December 2024 compared to the same period last year. Growth
in net interest income was 18.0 percent in 2024, down from 41.5 percent in 2023, reflecting the
moderation in growth in interest income which was due to the decline in lending rates and rates on
money market instruments during the review period. Fees and commissions, however, grew by 25.8
percent in 2024 relative to a growth of 25.2 percent in 2023.

Similar declines in growth in cost lines moderated the impact of the decline in growth in income lines
on the bottom line. The industry’s operating expenses grew by 22.0 percent in December 2024,
compared to 34.9 percent in 2023, reflecting the moderation in growth in non-staff-related expenses.
Provisions for depreciation, bad debt and impairment losses on financial assets also contracted by 11.7
percent in December 2024, compared to the 79.2 percent contraction recorded in December 2023.

(a) Return on Assets and Return on Equity
Profitability indicators for the banking sector moderated in December 2024 on the back of the slowdown
in profit-before-tax and profit-after-tax recorded during the year. The sector’s Return on Assets (ROA)
declined to 5.0 percent in December 2024, from 5.4 percent in December 2023. Also, banks’ Return on
Equity (ROE) fell to 30.8 percent in December 2024, from 34.2 percent over the same comparative
period in 2023.

(b) Interest Margin and Spread
The sector’s interest spread widened marginally from 12.7 percent in December 2023 to 12.9 percent
in December 2024. The increase in spread resulted from the decline in interest payable to 5.8 percent,
from 6.1 percent a year earlier. Gross yields, however, remained fairly flat at 18.7 percent in December
2024 compared to 18.8 percent a year ago. The ratio of gross income to total assets (asset utilisation)
also dropped from 15.2 percent to 13.6 percent whereas the profitability ratio recorded an increase to
20.9 percent in December 2024 from 19.9 percent in December 2023.

(c) Composition of Banks’ Income
Interest income from investments continued to be the largest component of banks’ total income in
December 2024, with its share unchanged at 41.5 percent. The share of interest income from loans rose
marginally to 35.5 percent in December 2024 from 35.3 percent in December 2023, in line with the
increase in gross advances during the year. The share of banks’ income from fees and commissions,
likewise, increased to 11.3 percent in December 2024 from 10.8 percent in December 2023, while the
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share of income from other sources declined to 11.7 percent from 12.4 percent during the same reference
period.

Figure 5.3: Composition of Income, Cost and Borrowings


Source: Bank of Ghana


5.3.4 Operational Efficiency
The banking sector was relatively cost efficient due to slowdown in the growth of operating expenses
during the period under review. The cost-to-income ratio fell to 79.1 percent in December 2024 from
80.1 percent in December 2023, while the cost-to-total assets ratio improved to 10.8 percent from 12.1
percent. The operational cost to gross income ratio also declined to 53.1 percent from 55.1 percent,
whereas the operational cost to total asset ratio improved to 7.2 percent from 8.3 percent over the same
comparative period.

5.3.5 Banks’ Counterparty Relationships
Total offshore balances grew by 110.1 percent to GH¢41.5 billion in December 2024, compared to the
47.7 percent growth recorded in the previous year, driven largely by growth in nostro balances and
placements. Nostro balances grew by 118.4 percent in December 2024 compared with a contraction of
0.7 percent in December 2023. Growth in industry placements was also strong but lower at 102.9


Percent
Percent


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percent in December 2024, compared to the growth of 169.6 percent during the same period last year.
Consequently, the ratio of offshore balances to net worth increased significantly to 104.1 percent in
December 2024, from 67.7 percent in December 2023.

The share of banks’ external borrowings in total borrowings declined to 16.6 percent in December 2024,
from 38.7 percent in December 2023, while the share of domestic borrowings increased to 83.4 percent
from 61.3 percent in December 2023 as interbank activities picked up more strongly during the year.
Banks’ external borrowings were largely long-term in nature, although the share of long-term
borrowings in total external borrowings declined to 61.2 percent in December 2024, from 63.3 percent
in December 2023, while the share of short-term borrowings increased to 38.8 percent in December
2024, from 36.7 percent a year earlier.

5.4 Credit Conditions Survey
Notwithstanding banks’ relative eased stance on loans in 2024 relative to 2023, banks reported a net
tightening in the stance on loans to enterprises and households in the December 2024 Credit Conditions
Survey round relative to the October 2024 survey round. The net tightening in the overall credit stance
to enterprises was due to the tight stance on all sub-categories of corporate loans as a result of high cost
of funds. Banks projected a net ease in the overall stance on corporate loans in the first two months of
2025, driven by a net ease in the stance on loans to all sub-categories of corporates.

Figure 5.4: Credit Conditions Survey Results


Source: Bank of Ghana

The stance on loans to households also tightened during the last two months of 2024 from a net tightened
stance on consumer credit and other lending. Banks project the overall stance on loans to households to
Index, a rise denotes tightening
Index, a rise denotes tightening


Large Enterprises


Index, a rise denotes increase in demand
Index, a rise denotes increase in demand

-10

-20

-30

-40


Households
Corporates
Households
Corporates
NPR (%)
NPR (%)
NPR (%)
NPR (%)
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ease during the first two months of 2025 from a projected net ease in the stance on both consumer credit
and mortgages.

The December 2024 survey round pointed to a softening in the overall demand for credit by enterprises,
which reflected in all components of enterprise loans. Credit demand by corporates is, however,
projected to be stronger in January and February 2025.

Banks reported an increase in the demand for loans by households in the last two months of 2024, driven
by increases in demand for loans for house purchases as well as consumer credit. Demand for household
loans is, however, projected to decline in the first two months of 2025, in line with decrease in demand
for mortgages and consumer credit.

5.5 Conclusion and Outlook
The banking sector’s performance in 2024 pointed to a gradual recovery from the macroeconomic
challenges faced in 2022. Growth in the banking industry’s assets was strong in December 2024 relative
to December 2023, driven by increased liquidity flows from deposits and other funding sources. The
banking industry also recorded relative improvements in liquidity and efficiency indicators in 2024 as
against the 2023 performance. The industry’s solvency position improved in December 2024 relative to
December 2023, with the industry Capital Adequacy Ratio (CAR) without reliefs improving due to ongoing recapitalisation efforts of the banking sector. Asset quality concerns, however, remained,
representing an upside risk to the entire banking industry. Overall, the industry’s outlook remains stable
and sound, conditional on the recapitalisation of the sector by the end of December 2025 as well as the
implementation of rigorous credit risk underwriting standards and intensification of loan recovery
efforts to address asset quality concerns in the sector.
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6. Price Developments

6.0 Highlights
Recent price developments show a slowdown in the pace of disinflation and, subsequent to the last MPC
meeting, headline inflation experienced upticks in November and December, largely driven by food
price increases. Overall, headline inflation rose steadily from 20.4 percent in August to 23.8 percent in
December 2024. This was after inflation had experienced a smooth decline in the early part of the year.
On a year-on-year basis, the inflation rate of 23.8 percent for December 2024 was slightly higher than
23.2 percent recorded in December 2023.


6.1 Domestic Inflation
Domestic price developments since the last MPC indicate a disinflation process that has slowed down.
This has been driven mainly by food inflation and lagged pass-through of the exchange rate
depreciation. Inflation, which was 23.2 percent in December 2023, increased to 25.8 percent by the end
of the first quarter of 2024. It then eased steadily to 20.4 percent in August. Subsequently, however, it
increased gradually to 23.0 percent in November and then 23.8 percent in December. The increase in
the December inflation was mainly due to pick-up in price pressures of food, reflecting the disruptive
impact of the dry spell on crop production, especially that of cereals. Non-food inflation, however,
declined to 20.3 percent in December from 20.7 percent in November 2024.

The underlying inflationary pressures have remained sluggish. The Bank’s main core measure of
inflation, which isolates price increases of energy and utility items from the consumer basket, increased
to 23.1 percent in December 2024, from 22.4 percent in November and 21.4 percent in October.


Source: GSS and Bank of Ghana Staff Calculations
Figure 6.1: Headline Inflation (%)
Figure 6.2: Headline vs Core
Inflation (%)

Headline

Lower Band

Upper Band
Core 1 (Excluding Fuel, and
Utilities)

Headline Inflation

Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Sep-24
Dec-24
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Sep-24
Dec-24
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-1
-2
-3
On a month-on-month basis, headline inflation increased by 1.8 percent in December 2024, from 2.6
percent in November 2024 and 0.9 percent in October. During the same period, monthly food inflation
increased by 2.8 percent in December, from 3.8 percent in November and 1.8 percent in October.
Monthly non-food inflation edged down by 0.7 percent in December 2024, from 1.6 percent in
November and 1.4 percent in October.

Figure 6.3: Month-on-Month Inflation (%)


Jan-

Feb-

Mar
-23
Apr-

May
-23
Jun-

Jul-

Aug-

Sep-

Oct-

Nov-

Dec-

Jan-

Feb-

Mar
-24
Apr-

May
-24
Jun-

Jul-

Aug-

Sep-

Oct-

Nov-

Dec-

Headline

Food

Non-food

Source: Ghana Statistical Service

A disaggregation of the Consumer Price Index by sub-groups shows a broad decline in inflation across
the basket in 2024. However, four items with significant weight in the sub-groups drove the marginal
uptick in headline inflation in the year. These were housing and utilities, transport, education, and
insurance and financial services.

Table 6.1 CPI Components
CPI Components (%)
Weghts
(%)

Dec
Dec
Sept
Oct
Nov
Dec
Jan
Mar
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Overall

Food and Beverages

Non-food

Alcoholic Beverages, Tobacco & Narcotics

Clothing and footwear

Housing and Utilities

Furnishings, Household Equipment

Health

Transport

Information and Communication

Recreation & Culture

Education

Restaurants and accommodation services

Insurance and Financial services

Personal care, social protection & Miscellaneous services

Source: Ghana Statistical Service
Source: Ghana Statistical Service

6.2 Inflation Risk Assessment and Outlook
The inflation profile remains elevated, largely driven by food price movements, especially in the last
quarter of the year. Climate-related factors, including the dry spell in some parts of the food-growing
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regions of the country and the late onset of rains, negatively affected production, while supply chain
weaknesses generally affected food prices. While the inflation outturn for 2024 deviated from target, it
is expected that the disinflation process will resume, contingent on renewed efforts at fiscal
consolidation, which is anticipated in the new administration’s economic policy agenda and the yet-to-
be-presented 2025 Budget Statement. The Bank’s latest inflation forecast shows a steady decline and
return to the path of disinflation, with an extended time horizon of achieving the medium-term target of
8±2 percent in the second quarter of 2026.

Decision on the Monetary Policy Rate
Under the circumstances, the Monetary Policy Committee decided to keep the policy rate unchanged
at 27.0 percent.
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APPENDIX

Table A1: Sources of Growth in Total Liquidity (GH¢ Millions, unless otherwise stated)
Appendix 1: Sources of Growth in Total Liquidity (M2+) (millions of Ghana cedis unless otherwise stated)
Dec-22
Dec-23
Mar-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
1 Net Foreign Assets

Bank of Ghana

Commercial Banks

2 Net Domestic Assets


ow: Claims on government (net)


ow: Claims on Private sector( Incl. PE's)

BOG OMO Sterilisation Acc.

5 Total Liquidity (M2+)


ow: Broad Money Supply (M2)


ow: Foreign Currency Deposits(¢million)

Change from previous year (in per cent)
8 Net Foreign Assets

9 Net Domestic Assets


ow: Claims on government (net)


ow: Claims on Private sector( Incl. PE's)


ow: BOG OMO Sterilisation Acc.

12 Total Liquidity (M2+)


Broad Money Supply (M2)


Foreign Currency Deposits (FCDs)

Cummulative change from previous year end (in per cent)
15 Net Foreign Assets

16 Net Domestic Assets


o/w: Claims on government (net)

18 Broad Money(M2+)

Annual per cent contribution to money growth
19 Net Foreign Assets

20 NDA

21 Total Liquidity (M2+)

Memorandum items
22 Reserve Money

23 NFA ($million)

24 Currency ratio

25 FCD/M2+

26 FCD/Total Deposit

27 RM multiplier

Source: Bank of Ghana Staff Calculations

Table A2: Sources of Growth in Reserve Money (GH¢ Millions, unless otherwise stated)
Appendix 2: Sources of Growth in Reserve Money (millions of Ghana cedis unless otherwise stated)
Dec-22
Dec-23
Mar-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
1 Net Foreign Assets ( NFA)

2 Net Domestic Assets ( NDA)

of which:

ow: Claims on government (net)


Claims on DMB's (net)
(4057.4)
(9878.4)
(16020.1) (13451.5) (19716.9) (18523.3) (26897.1) (21593.3) (17002.5) (21783.3)

OMO Sterilisation Account.
(7725.5)
(24795.4) (22605.9) (16244.5) (21158.6) (26026.8) (21138.2) (21570.9) (23492.5) (18142.9)
6 Reserve Money ( RM)


ow:Currency


DMB's reserves


Non-Bank deposits

Change from previous year (in per cent)
10 Net Foreign Assets

11 Net Domestic Assets


ow: Claims on government (net)


Claims on DMB's (net)


OMO Sterilisation Account.

15 Reserve Money ( RM)


ow:Currency

Cumulative change from previous year end (in per cent)
17 Net Foreign Assets ( NFA)

18 Net Domestic Assets ( NDA)


o/w: Claims on government (net)

20 Reserve Money ( RM)

Annual per cent contribution
21 Net Foreign Assets

22 Net Domestic Assets ( NDA)

23 RM growth ( y-o-y)

Source: Bank of Ghana Staff Calculations
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Table A.3: Asset and Liability Structure of the Banking Sector
Dec-21
Dec-22
Dec-23
Oct-24
Dec-24
Components of Assets (% of Total)
Cash and Due from Banks

Investments

Net Advances

Others

Components of Liabilities and Shareholders' Funds (% of Total)
Total Deposits

Total Borrowings

Shareholders' Funds

Other Liabilities

Source: Bank of Ghana Staff Calculations

Table A.4: Credit Growth
Economic Sector
Dec-22
Gh¢million
Dec-23
Oct-24
Dec-24
y/y growth (%)
Dec-23
Dec-24
Public Sector

Private Sector

- Private Enterprises

o/w Foreign

Indigeneous

- Households

Gross Loans

Source: Bank of Ghana Staff Calculations


Table A.5: Contingent Liabilities
Dec-21
Dec-22
Dec-23
Oct-24
Dec-24
Contingent Liabilities (GH¢million)

Growth (y-o-y)

% of Total Liabilities

Source: Bank of Ghana Staff Calculations


Table A.6: Distribution of Loans and NPLs by Economic Sector (%)
Dec-22
Dec-23
Oct-24
Dec-24
Share in Total
Credit
Share in
NPLs
Share in Total
Credit
Share in
NPLs
Share in Total
Credit
Share in
NPLs
Share in Total
Credit
Share in
NPLs
a. Public Sector

i. Government

ii. Public Institutions

iii. Public Enterprises

b. Private Sector

i. Private Enterprises

o/w Foreign

Indigeneous

ii. Households

iii. Others

Source: Bank of Ghana Staff Calculations
PUBLIC

Table A.7: Liquidity Ratios
Dec-21
Dec-22
Dec-23
Oct-24
Dec-24
Liquid Assets (Core) - (GH¢'million)

Liquid Assets (Broad) -(GH¢'million)

Liquid Assets to total deposits (Core)-%

Liquid Assets to total deposits (Broad)- %

Liquid assets to total assets (Core)- %

Liquid assets to total assets (Broad)- %

Source: Bank of Ghana Staff Calculations

Table A.8: Profitability Indicators (%)
Dec-21
Dec-22
Dec-23
Dec-24
Gross Yield

Interest Payable

Spread

Asset Utilitisation

Interest Margin to Total Assets

Interest Margin to Gross income

Profitability Ratio

Return On Equity (%) after tax

Return On Assets (%) before tax

Source: Bank of Ghana Staff Calculations

Table A.9: DMBs’ Income Statement
Dec-21
Dec-22
Dec-23
(GH ¢'million)
Dec-24
Dec-22
Dec-23
Dec-24
Y-on-y Growth (%)
Interest Income

Interest Expenses

Net Interest Income

Fees and Commissions (Net)

Other Income

Operating Income

Operating Expenses

Staff Cost

Other operating Expenses

Net Operating Income

Total Provision (Loan losses, Depreciation &
others)

Income Before Tax

Tax

Net Income

Gross Income

Source: Bank of Ghana Staff Calculations

Table A.10: Developments in Offshore Balances
Dec-21
Dec-22
Dec-23
Oct-24
Dec-24
Offshore balances as % to Networth

Annual Growth in Offshore balances (%)

Annual Growth in Nostro Balances (%)

Annual Growth in Placement (%)

Source: Bank of Ghana Staff Calculations
PUBLIC

Table A.11: Headline Inflation
Annual Changes in CPI (%)
Monthly Changes in CPI (%)
Core Inflation (%)
Combined
Food
Non-food
Combined
Food
Non-food
Core 1
Core 2
Core 3
Core 4
Dec-20

Dec-21

Dec-22


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Ghana Statistical Service
Bank of Ghana