PUBLIC
PUBLIC
BANK OF GHANA
MONETARY POLICY REPORT
May 2024
B
A
N
K
O
F
G
H
A
N
A
E
S
T
.

PUBLIC
PUBLIC
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 118th meeting held in May 2024.
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 – May 2024
www.bog.gov.gh
Monetary Policy Report, BOG Research Department – May 2024
i | P a g e
PUBLIC
PUBLIC
Table of Contents
Monetary Policy Report, BOG Research Department – May 2024
1 | P a g e
PUBLIC
PUBLIC
Overview
Global economic activity remains resilient despite sustained monetary policy tightening across
advanced economies and Emerging Market and Developing Economies. The robust economic activity,
observed over the period, was attributable to stronger consumption spending arising from employment
growth in advanced economies and policy support in China, the US, and some larger Emerging Market and
Developing Economies (EMDEs). Other factors that supported global activity in 2023 were additions to
the stock of capital, a rebound in the manufacturing and services sector, improved trade, and resolution of
pandemic-era supply chain disruptions.
Progress towards inflation targets has stalled somewhat since the beginning of the year. This
development was due to increasing prices in the services sector and a resurgence in crude oil prices, as
OPEC+ slashed production. This notwithstanding, inflation is projected to decline steadily on the back of
tighter monetary policy, softening labour market conditions, and the waning effects of past shocks.
Policy rates have been kept elevated to anchor inflation and lower inflation rates further.
Consequently, global financial conditions have generally remained restrictive. Longer-term bond yields
have also risen, due to the expectation that a tight policy stance would be maintained in the near term. In
the outlook, financial conditions are expected to ease in 2024 as the disinflation process continues and oil
prices decline, amid well-anchored inflation expectations.
The Bank of Ghana’s high-frequency real sector indicators pointed to steady improvement in
economic activity, evidenced by continued steady growth in the CIEA. Also, the Purchasing Managers’
Index (PMI) firmed up, driven by resilient consumer demand. Despite the steady improvement in economic
activity, real private sector credit remained generally weak, while business and consumer confidence
softened, reflecting concerns about the high cost of raw materials and foreign exchange market pressures.
The disinflation process remained sluggish over the first quarter of the year. Inflation, which was 23.1
percent in December 2023, increased to 25.8 percent in March 2024 largely on the back of rising food
inflation. In April, however, inflation eased to 25 percent on account of increased supply of seasonal food
crops.
Banking sector indicators point to a recovery from the impact of the Domestic Debt Exchange
Programme (DDEP). In the first four months of 2024, key financial soundness indicators broadly
improved, with banks reporting higher profits as compared to the same period in the previous year. Total
assets also increased by 28.8 percent.
Ghana’s external sector position remains strong, although the current account surplus nearly halved
in the first quarter of the year. The reduction in the current account surplus broadly reflected a rebound
in imports and net income payments (energy sector payments), which increased pressure on the Ghana cedi
in the foreign exchange market. From the current account position, reserves were accumulated in the first
quarter of the year, with reserve buffers expected to exceed programme expectations in June.
Monetary Policy Report, BOG Research Department – May 2024
2 | P a g e
PUBLIC
PUBLIC
1. Global Economic Developments
1.0 Highlights
Despite a tight monetary policy stance, Global growth remains relatively strong, bolstered by an expansion
of economic activity in large economies. Progress toward attaining inflation targets globally has somewhat
stalled as oil prices have risen due to escalating geopolitical tensions. For emerging markets and
developing economies, the strengthening of the US dollar and the tight monetary policy stance of the US
Fed have induced more headwinds to the disinflation process. Due to these developments, central banks
have mostly been reluctant to loosen their tight monetary policy stance.
1.1 Global Growth Developments
Global economic activity remained resilient despite synchronous policy tightening. The robust economic
activity reflected stronger consumption spending arising from employment growth in advanced economies,
and policy support in China, the US and some Emerging Markets and Developing Economies (EMDEs).
Additionally, global economic activity was supported by supply side factors such as increases in the labour
force due to migration, additions to the stock of capital, a rebound in both the manufacturing and services
sector, and resolution of pandemic era supply chain bottlenecks. Despite these tailwinds to growth,
geopolitical uncertainty, the slower pace of disinflation, and elevated debt burdens are dampening the
growth outlook. The IMF, in its April 2024 World Economic Outlook, projects global growth to remain at
3.2 percent in 2024 and 2025.
Table 1.1: Global Growth Projections (%)
Estimates

World
3.2
3.2
3.2
Advanced Economies
1.6
1.7
1.8
United States
2.5
2.7
1.9
Euro Area
0.4
0.8
1.5
Germany
–0.3
0.2
1.3
France
0.9
0.7
1.4
Italy
0.9
0.7
0.7
Spain
2.5
1.9
2.1
Japan
1.9
0.9
1.0
United Kingdom
0.1
0.5
1.5
Canada
1.1
1.2
2.3
Other Advanced Economies
1.8
2.0
2.4
Emerging Market and Developing Economies
4.3
4.2
4.2
China
5.2
4.6
4.1
India
7.8
6.8
6.5
Russia
3.6
3.2
1.8
Brazil
2.9
2.2
2.1
Mexico
3.2
2.4
1.4
Sub-Saharan Africa
3.4
3.8
4.0
Nigeria
2.9
3.3
3.0
South Africa
0.6
0.9
1.2
Year over Year
Projections
Source: IMF, WEO April 2024 Update

Monetary Policy Report, BOG Research Department – May 2024 3 | P a g e

PUBLIC
PUBLIC
1.2 Global Price Developments
Global headline inflation largely trended downwards in 2023, but the momentum has stalled in 2024. The
slower disinflation observed in the first four months of 2024 was largely attributable to an uptick in the
prices of oil, services and food items such as meat, vegetable oil, and cereal. Core inflation also remained
sticky, largely due to services inflation which has risen on the back of strong wage growth.

Supported by tighter monetary policy, softening labour markets, and the waning effects of past shocks, core
inflation is expected to decline by 1.2 percentage points in 2024, after contracting by 0.2 percent in 2023.
Similarly, global headline inflation is expected to decline steadily in 2024 and 2025 on the back of a decline
in oil prices arising from oil production increases by non-OPEC+ countries.

Figure 1.1: Headline Inflation Rates (%)

Source: Trading Economics

1.3 Global Financial Markets Developments
Central banks across many economies have been reluctant to begin the much-anticipated policy easing
cycle amid still high inflation and emerging price pressures related to geopolitical tensions in the Middle
East. Consequently, global financial conditions have remained restrictive. Expectations of future policy rate
cuts have supported portfolio flows to EMDEs with equity and debt flows at US$10.2 billion and US$22.5
billion, respectively, in March 2024. In the outlook, financial conditions are set to ease in the second half
of 2024, reflecting expected policy rates cuts by major central banks in advanced economies.


Monetary Policy Report, BOG Research Department – May 2024 4 | P a g e

PUBLIC
PUBLIC
Table 1.2: Monetary Policy Stance of Selected Central Banks
Policy rate -
Previous (%)
Policy Rate
Current (%) Forecast
Inflation
March, 2024
Inflation April,

Real rate
Infl Target
Overall
Fiscal
Deficit
(2023,%
of GDP)
GDP Growth
(Dec.2023)
GrossDeb
t/GDP(20
23,%)
YTD Depr/May
U.S

Euro Area

< 2%

UK

Japan

Russia


India

4±2%

Brazil

4.5±1.5%

Turkey

68.5
69.8
-19.8
5±2%

Malaysia


Indonesia


3.5% ± 1%
-1.6

39.9
-3.94
Chile

3±1%

Ghana

25.8
25.0

8±2%

South Africa

Nigeria

Kenya

13.0
5.7


Zambia

12.5


Morocco


70.6
-0.80
Angola


Egypt

7± 2%

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

1.4 Currency Markets
A strengthened US dollar and heightened demand from the energy, manufacturing, and commerce sectors
weighed on the Ghana cedi in the foreign exchange market. On the interbank market, the cedi depreciated
by 10.5 percent, 9.0 percent and 9.4 percent against the dollar, the pound sterling, and the euro, respectively,
on a year-to-date basis. During the same period in 2023, the cedi depreciated by 21.7 percent, 25.1 percent
and 24.3 percent against the dollar, the pound sterling, and the euro, respectively. In the outlook, the tight
monetary policy stance in Ghana and the signalled policy rate cuts in some advanced economies are
expected to ease pressure on the cedi in the near-term.


Monetary Policy Report, BOG Research Department – May 2024 5 | P a g e

PUBLIC
PUBLIC
Table 1.3: Interbank Exchange Rates
US$/GHC*
Monthly
depreciation/ap
preciation
Year-to-Date
depreciation/ap
preciation
GBP/GHC*
Monthly
depreciation/ap
preciation
Year-to-Date
depreciation/a
ppreciation
Euro/GHC*
Monthly
depreciation/a
ppreciation
Year-to-Date
depreciation/ap
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

Source: Bank of Ghana Staff Calculations

Relative to Ghana’s major trading partners’ currencies, the cedi depreciated on a year-to-date basis by 8.6
percent in nominal trade weighted terms and 11.4 percent in forex transaction weighted terms. This is
against a depreciation of 31.1 percent and 28.1 percent in nominal trade weighted terms and nominal foreign
exchange transaction weighted terms, respectively, over the same period in 2023.

Table 1.4: Nominal Effective Exchange Rate
Month
2021=100
Monthly CHG(%)
Year-to-Date (%)
FXTWI
TWI
FXTWI
TWI 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

Source: Bank of Ghana Staff Calculations

Monetary Policy Report, BOG Research Department – May 2024 6 | P a g e

PUBLIC
PUBLIC
In real bilateral terms, the cedi depreciated on a year-to-date basis by 7.4 percent, 4.0 percent and 3.2 percent
against the dollar, the pound sterling, and the euro, respectively. For the corresponding period in 2023, the
cedi depreciated by 24.6 percent, 28.5 percent and 28.3 percent against the dollar, the pound sterling, and
the euro, respectively.

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

Source: Bank of Ghana Staff Calculations

The cedi depreciated by 3.8 percent and 7.0 percent in real trade weighted terms and real forex transaction
weighted terms, respectively, on a year-to-date basis. This compares with a depreciation of 27.9 percent
and 24.9 percent in real trade weighted terms and real foreign exchange transaction weighted terms
respectively for the same period in 2023.


Monetary Policy Report, BOG Research Department – May 2024 7 | P a g e

PUBLIC
PUBLIC
Table 1.6: Real Effective Exchange Rate for Major Trade Partners
Month
INDEX (2021=100)
MONTHLY CHG
Year-to-Date (%)
RFXTWI
RTWI
RFXTWI
RTWI
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

Source: Bank of Ghana Staff Calculations

1.5 Global Economic Outlook and Risks
The global economy remains resilient despite the tight monetary policy stance by central banks. Headline
inflation remains above central bank targets in most countries due to a resurgence in oil prices, geopolitical
uncertainty, and high services inflation. Financial conditions also remain restrictive, reflecting high policy
rates. In the outlook, risks to inflation from the external environment are elevated as policy rates in advanced
economies are expected to remain high as inflation, though declining, remains high relative to targets. This
may keep the dollar strong for a longer period, a development that will likely lead to exertion of pressure
on the exchange rate.


Monetary Policy Report, BOG Research Department – May 2024 8 | P a g e

PUBLIC
PUBLIC
2. External Sector Developments

2.0 Highlights
Ghana’s external sector position remains strong although the current account surplus nearly halved in the
first quarter of 2024. The performance in the current account reflects a rebound in imports and net income
payments. Accumulation of reserve buffers remains on course and is set to exceed the programme
expectation in June, largely due to the domestic gold purchase programme. The overall balance of
payments recorded a surplus of US$84.74 million in the first quarter of 2024, compared to a deficit of
US$586.99 million in the first quarter of 2023.

2.1 Commodity Price Trends
Cocoa futures recorded its highest month-on-month gains in April 2024 as prices went up significantly by
35.2 percent compared to the previous month’s average of US$10,113.9 per tonne. The recent upticks in
cocoa prices have been triggered by extreme weather conditions and blackpod and swollen shoot diseases,
which have led to a reduction in supplies from Ghana and Cote d’Ivoire. From the beginning of the year to
April 2024, prices have more than doubled, increasing by about 138.9 percent.

Benchmark Brent crude oil prices recovered from the previous month’s loss to settle at an average of price
of US$89.0 per barrel in April, representing an increase of 5.0 percent. Prices were supported by heightened
geopolitical tensions through the remainder of the year. On a year-on-year basis, crude oil prices have
gained 15.0 percent.

Spot gold prices edged higher by 8.2 percent to close at an average price of US$2,334.2 per fine ounce in
April 2024 compared to US$2,158.2 per fine ounce in March 2024. Prospects of monetary policy easing by
major central banks, geopolitical tensions in the Middle East, and the Russia-Ukraine war have combined
to push gold prices up. Year to date, gold prices have increased by 15.2 percent.

2.1.1 Commodity Price Index
The weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude oil)
increased for the third consecutive month in March 2024. The index rose increased by 12.9 percent to 178.4
from 158.0 in the previous month. The increase in the commodity index was on account of a rise in cocoa,
crude oil, and gold sub-indices by 31.0 percent, 3.7 percent, and 6.5 percent, respectively.


Monetary Policy Report, BOG Research Department – May 2024 9 | P a g e

PUBLIC
PUBLIC

Source: Reuters


Source: Reuters

Source: Reuters Source: BOG Staff Computations


Feb-18
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Figure 2.1: International Cocoa Prices
(US$/metric tonnes)

Feb-18
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Figure 2.2: International Brent Crude Oil
Prices (US$ per barrel)

Feb-18
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Figure 2.3: International Gold (US$/ounce)

Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Figure 2.4: Commodity Price Index

Monetary Policy Report, BOG Research Department – May 2024 10 | P a g e

PUBLIC
PUBLIC
2.2 Trade Balance
The balance of trade recorded a surplus of US$744.3 million for the first four months of 2024. On the back
of an increase in imports, the trade surplus in the first four months of 2024 was lower than the surplus of
US$1.39 billion recorded for the same period in 2023. Total exports grew by 4.9 percent to US$5.83 billion,
driven mainly by increase in gold exports. Earnings from gold exports amounted to US$2.97 billion, an
increase of 37.0 percent, driven mainly by higher volumes of exports and a modest increase in prices. The
value of crude oil exports was US$1.27 billion, representing an increase of 9.4 percent. In contrast, cocoa
exports, both beans and products, dropped by 49.0 percent to US$599.3 million, mainly on the back of
lower volumes of exports. Other exports including non-traditional exports decreased by 6.0 percent to
US$981.8 million. The value of imports increased by 22.2 percent to US$5.08 billion, driven mainly by
non-oil imports, which went up by 31.2 percent to US$3.53 billion, while oil imports increased by 5.6
percent to US$1.55 billion.

2.3 Current Account
The provisional data for the first quarter of the year showed a current account surplus of US$372.12 million,
representing a 40.8 percent decline from the surplus of US$629.01 million recorded during the same period
in 2023. The lower surplus was driven by a reduced trade surplus and higher investment income payments.
Net income payments amounted to US$727 million for the first quarter of 2024, compared to US$508
million for the first quarter of 2023. Net remittance flows was US$1.44 billion in the first quarter of 2024,
compared to US$971 million in the corresponding period of 2023.

2.4 Capital and Financial Account
The capital and financial account recorded a net outflow of US$113 million in 2024, lower than the net
outflow of US$998.40 million recorded in the same period in 2023. The reduction in the net outflow was
largely driven by significant inflows from the IMF and World Bank, as well as improved FDI flows into
the economy. The combined outcomes in the current account and the capital and financial account resulted
in an overall balance of payments surplus of US$84.7 million in the first quarter 2024, against a deficit of
US$586.9 million in the corresponding period of 2023.

2.5 International Reserves
Gross International Reserves (GIR) at end-April 2024 amounted to US$6.6 billion, providing cover for 3.0
months of imports of goods and services. This represents a build-up of US$687.6 million so far as at April
2024 compared with the end-December 2023 position of US$5.9 billion (equivalent to 2.7 months of import
cover)

2.6 Commodity Price Outlook
The demand for cocoa appears to have peaked, and expectations are for prices to retreat, despite the forecast
of another round of a supply deficit. In contrast to cocoa prices, crude oil prices are largely expected to
remain high in the near-term on the back of ongoing geopolitical tensions and continued production
restraints by some OPEC+ producers. A slowdown in the major economies and expectation of increased
production by non-OPEC countries is expected to moderate potential price increases. Like oil prices, gold
prices are also expected to remain elevated for the remainder of 2024. Ongoing geopolitical tensions and
the expectation of interest rate cuts by the Fed in 2024 is expected to support gold prices in the near-tomedium term.


Monetary Policy Report, BOG Research Department – May 2024 11 | P a g e

PUBLIC
PUBLIC
Table 2.1: Trade Balance (US$ million)

Source: Bank of Ghana

Prov 2024
Abs Y/Y
Rel Y/Y
Jan - Apr
Jan - Apr
Jan - Apr
Chg
Chg
Trade Balance ( $'M)

Trade Bal (% GDP)
1.6
1.8
0.9
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)
18,091,788.0 14,304,062.0 15,257,365.0
953,303.0
6.7
Unit Price ($/bbl)

Other Exports

o/w Non-Tradional Exports

Total Import ( $'M)

Non-Oil

Oil and Gas

of which: Products

Gas ( $'M)


Monetary Policy Report, BOG Research Department – May 2024 12 | P a g e

PUBLIC
PUBLIC
3. Real Sector Developments

3.0 Highlights
The latest high frequency real sector indicators pointed to a sustained pick-up in economic activity in
March 2024 compared to a year ago. The pick-up in economic activity was supported by port activity,
SSNIT contributions from the private sector, industrial consumption of electricity and passenger arrivals.
Cement sales, however, contracted in the review period.

3.1 Trends in Real Sector Indicators
Consumer Spending
Consumer spending, proxied by domestic VAT collections and retail sales, posted a mixed performance in
March 2024, compared with the corresponding period in 2023. Domestic VAT collections decreased by 8.2
percent on a year-on-year basis to GH¢1.15 billion. However, cumulatively, total domestic VAT for the
first quarter of 2024 went up by 13.1 percent to GH¢3.62 billion, compared with GH¢3.20 billion for the
corresponding period of last year.

Retail sales increased by 20.9 percent (year-on-year) to GH¢199.80 million in March 2024, up from the
GH¢165.20 million recorded in the same period in 2023. On a month-on-month basis, retail sales improved
by 19.3 percent in March 2024, from GH¢167.48 million in the preceding month. In cumulative terms,
retail sales for the first quarter of 2024 went up by 18.6 percent.

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), improved in March 2024. Total direct taxes collected increased by 27.8 percent (year-on-year) to
GH¢6.12 billion in March 2024, relative to GH¢4.79 billion recorded in the same period of 2023.
Cumulatively, total direct taxes collected for the first quarter of 2024 went up by 17.8 percent to GH¢12.69
billion, compared with GH¢10.77 billion collected for the same period in 2023. In terms of contributions
of the various sub-tax categories, corporate tax accounted for 67.2 percent, income tax (PAYE and selfemployed) accounted for 18.7 percent, while “other tax sources” contributed 14.1 percent.

Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 24.5 percent
in year-on-year terms to GH¢395.34 million in March 2024, from GH¢317.61 million collected during the
corresponding period in 2023. Cumulatively, for the first quarter of 2024, the contribution grew by 23.2
percent to GH¢1.12 billion, relative to GH¢906.95 million recorded in the same period in 2023.

Construction Sector Activities
Activity in the construction sub-sector, proxied by the volume of cement sales, declined by 9.6 percent
(year-on-year) in March 2024 to 233,741.82 tonnes. On a month-on-month basis, total cement sales
improved by 5.7 percent in March 2024, compared with 221,085.65 tonnes recorded in February 2024.
Cement sales for the first quarter of 2024 went down by 3.5 percent to 689,912.03 tonnes, from 715,070.24
tonnes for the same period of 2023. The decline in total cement sales was due to a slowdown in construction
activities during the review period.


Monetary Policy Report, BOG Research Department – May 2024 13 | P a g e

PUBLIC
PUBLIC
Vehicle Registration
Transport sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing
Authority (DVLA), improved by 3.5 percent to 13,297 in March 2024, from 12,847 vehicles registered
during the corresponding period of 2023. Cumulatively, however, vehicles registered by the DVLA within
the first quarter of 2024 decreased by 3.7 percent to 52,576.

Industrial Consumption of Electricity
Industrial consumption of electricity increased by 3.4 percent in March 2024 to 299.02 gigawatts, as against
289.23 gigawatts recorded for the corresponding period in 2023. In cumulative terms, electricity consumed
by industries for the first quarter of 2024 increased by 2.4 percent to 900.06 gigawatts, from 879.11
gigawatts for the corresponding period a year ago.

Passenger Arrivals
Passenger arrivals improved by 27.0 percent in year-on-year terms to 109,380 in March 2024, from 86,115
arrivals recorded a year ago. In February 2024, passenger arrivals went up by 18.5 percent. For the first
quarter of 2024, there were 308,024 arrivals recorded at the international airport and land borders, compared
with 247,834 for the corresponding period in 2023, representing a growth of 24.3 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 12.5 percent, year-on-year, to 60,309 in March 2024, up from 53,615 recorded for the
period in 2023. In cumulative terms, total container traffic for the first quarter of 2024 went up by 22.9
percent to 170,192, compared with 138,430 for the corresponding period of last year.

Labour Market - Advertised Jobs
The number of jobs advertised in selected print1 and online2 media, which partially gauges labour demand
in the economy, increased in April 2024 relative to what was observed in the corresponding period a year
ago. In total, 3,045 job adverts were recorded, compared with 2,581 for the same period in 2023, indicating
an improvement of 18.0 percent (year-on-year). On a month-on-month basis, the number of job vacancies
in April 2024 increased by 12.3 percent, from 2,712 jobs advertised in March 2024. Cumulatively, for the
first four months of 2024, the total number of advertised jobs went up by 5.9 percent to 11,334, from 10,707
recorded during the same period in 2023.

Private Sector Pension Contributions
Total number of private sector SSNIT contributors, which partially gauges employment conditions,
improved by 2.6 percent to 990,746 in March 2024, compared with 965,581 for the same period in 2023.
Cumulatively, for the first quarter of 2024, the total number of private sector contributors increased by 2.8
percent to 2,960,376, from 2,879,122 recorded over the corresponding period in 2023.


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.

Monetary Policy Report, BOG Research Department – May 2024 14 | P a g e

PUBLIC
PUBLIC
3.2 Composite Index of Economic Activity
The Bank’s updated real Composite Index of Economic Activity (CIEA) recorded an annual growth of 2.1
percent in March 2024, compared to a contraction of 6.4 percent observed for the same period of 2023. The
key growth drivers of the index over the period were imports, passenger arrivals, port activity, SSNIT
contributions from the private sector and industrial consumption of electricity.

3.3 Consumer and Business Surveys
The latest confidence surveys conducted in April 2024 pointed to a softening of sentiments. The Consumer
Confidence Index declined to 87.7 in April 2024, from 92.0 in February 2024, on account of uncertainties
about future economic conditions. Similarly, the Business Confidence Index dipped to 92.6 from 96.0 in
the same comparative period as businesses expressed concern that recent exchange rate volatility and the
unstable intermittent power supply situation could significantly raise their operational costs moving
forward. Ghana’s Purchasing Managers’ Index (PMI), however, signalled an improvement in business
activity in the review period as the index rose to 51.3 in April 2024 from 50.9 in March 2024 due to
improved consumer demand.


Monetary Policy Report, BOG Research Department – May 2024 15 | P a g e

PUBLIC
PUBLIC

Figure 3.1: High Frequency Economic Indicators


Sources: Bank of Ghana, Various Stakeholders
...Domestic VAT collections declined while retail sales improved in March 2024
compared to February 2024...
...Labour hiring conditions, proxied by the number of private sector
workers contributing to SSNIT, remained relatively unchanged...
...Labour market conditions improved in March 2024 relative to February
2024...
...Construction activities, proxied by cement sales, improved in March
2024 compared to February 2024...
...Port activity increased in March 2024 compared to the previous month...
...Passenger arrivals increased in March 2024 compared to February
2024...

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Cement Sales

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Thousands
Port Activity (Container Traffic)

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Thousands
Passenger Arrivals

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Thousands
Number of Private Sector Contributors to SSNIT
Thousands, tons

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Million, GHC
Million, GHC
Retail Sales and Domestic VAT collection
Retail Sales, Left
Domestic VAT

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Million GHC
SSNIT Contributions from Private Sector
Panel 1:
Ghana's Leading Indicators of Economic Activity

Monetary Policy Report, BOG Research Department – May 2024 16 | P a g e

PUBLIC
PUBLIC

Source: Bank of Ghana, Various Stakeholders
...Commercial banks' credit to the private sector improved in March 2024
relative to the pevious month...
...Industrial activity, proxied by industrial consumption of electricity,
remained largely unchanged...
...Exports went up while imports declined in March 2024 compared to
February 2024...

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

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
GWh
Industrial Consumption of Electricity

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Billion, GHC
DMB's Credit to Private Sector


Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Percent, y-o-y
Real CIEA
-16
-8

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
Percent, y-o-y
Cement Sales (Tons)
Port Activity
SSNIT Contr by Pte Sector
Exports
Industrial Cons of Electricity
DMB's Credit to Pte Sector
Imports
Tourist Arrivals
Dom VAT
Real CIEA growth (%)
Contribution to Real CIEA growth

Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Job Adverts
Panel 2:
Ghana's Leading Indicators of Economic Activity
...On a year-on-year basis, the real CIEA grew by 2.1 percent in March 2024,
compared with a contraction of 6.4 percent in March 2023...
...The growth in the real CIEA was driven by a pick-up in Imports, Passenger
Arrivals, Port Activity, SSNIT contributions from the private sector and Industrial
Consumption of Electricity...
...Demand for labour, proxied by the number of job adverts (in print and
online media), increased in April 2024...
Number of advertised jobs

Monetary Policy Report, BOG Research Department – May 2024 17 | P a g e

PUBLIC
PUBLIC

Source: Bank of Ghana, Various Stakeholders
...Business sentiments declined as firms expressed concern that recent
exchange rate volatility and unstable intermittent power supply situation
could significantly raise their operational costs moving forward...
...Vehicle registration decreased in March 2024 compared to the month
before...
...Consumer Confidence dipped on account of uncertainties about future
economic conditions...


Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Vehicle Registration
92.6

Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Index
Business Confidence Index
87.7

Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Index
Consumer Confidence Index

Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Billion, GHC
Domestic taxes, Direct
...Domestic tax collection increased in March 2024 compared to February
2024...
Panel 3:
Ghana's Leading Indicators of Economic Activity
Number of vehicles

Monetary Policy Report, BOG Research Department – May 2024 18 | P a g e

PUBLIC
PUBLIC
4. Monetary and Financial Developments

4.0 Highlights
Growth in monetary aggregates slowed down considerably in April 2024, reflecting strong liquidity
management operations to tighten liquidity. Total liquidity (M2+) grew by 29.9 percent in April 2024, on
year-on-year basis, compared with a growth of 45.6 percent in April 2023. Commercial banks’ reserves
with the Central Bank surged following implementation of the dynamic Cash Reserve Requirement (CRR).
Credit growth to the private sector also slowed due to increased risk aversion of banks on the back of
increased NPLs, and tight monetary policy. Interest rates on the money market broadly showed upward
trends at the short end of the yield curve.

4.1 Developments in Monetary Aggregates
Money Supply
Developments in monetary aggregates for April 2024 points to a decrease in the annual growth in broad
money supply (M2+) relative to the corresponding period of 2023. This was driven mainly by a moderation
in the pace of growth in Net Domestic Assets (NDA) of the depository corporations’ sector, partially
reflecting tight monetary policy and strong liquidity management. Net Foreign Assets (NFA) of the
depository institutions, however, increased significantly. Annual growth in M2+ declined to 29.9 percent
in April 2024, relative to 45.6 percent in the corresponding period of 2023. The contribution of NDA to the
growth of M2+ decreased to 6.8 percent from 52.1 percent, while that of NFA increased to 23.1 percent
from negative 6.5 percent over the same comparative period. In terms of annual growth rates, NDA
expanded by 6.7 percent in April 2024, relative to 51.6 percent in April 2023, while NFA expanded by
457.9 percent, relative to negative 803.0 percent, over the same comparative period.

Analysis of the components of M2+ showed that the decrease in the growth in M2+ largely reflected in
declines in the percentage distribution of growth in currency outside banks, demand deposits, savings and
time deposits, and foreign currency deposits in April 2024 relative to the same period in 2023.

Source: Bank of Ghana Source: Bank of Ghana


Figure 4.1a: M2+ Growth and its Sources
(% Contributions)
Net Foreign
Assets

Figure 4.1b: Banking Sector NDA and its
Sources (% Contributions)
NCG
Claims on Priv. Sect. (Incl. PE's)
BOG OMO Steril. Acc.

Monetary Policy Report, BOG Research Department – May 2024 19 | P a g e

PUBLIC
PUBLIC
Figure 4.2: M2+ and its Components (% Contributions)

Source: Bank of Ghana

4.2 Reserve Money
Annual growth in Reserve Money (RM) increased to 51.9 percent in April 2024, from 46.5 percent recorded
in the corresponding period of 2023. The introduction of the dynamic CRR instigated disinvestment of
Bank of Ghana bills and overnight placements by banks to shore up regulatory reserves. Net claims on
Government contracted, reflecting the lingering impact of the DDEP on the Central Bank balance sheet,
while net claims on DMBs increased on the back of the maturing depo placements, which were used by
banks to bolster their reserve position following the introduction of the dynamic CRR. The contribution of
NDA to the growth in RM was negative 2.2 percent, compared to 98.2 percent over the same comparative
period last year. In contrast, the NFA of the central bank expanded significantly, reflecting a net build-up
in foreign assets, largely driven by inflows from the Gold for Reserve (G4R) programme, forex purchases,
and proceeds from the IMF Extended Credit Facility (ECF) and cocoa syndicated loan. The contribution of
NFA to the growth in RM was 54.1 percent in April 2024, relative to a negative 51.7 percent contribution
in the corresponding period in 2023.

Source: Bank of Ghana Source: Bank of Ghana


4.3 Deposit Money Banks Credit Developments
DMBs’ credit to the private sector and public institutions increased by 7.7 percent in April 2024, compared
to 20.2 percent in April 2023. The decline in growth in credit was mainly due to a contraction in credit to
the public sector. Credit to the private sector increased by 10.8 percent in April 2024, compared to 19.8
percent recorded in the corresponding period of 2023. The decreased flow of credit to the private sector in
nominal terms was partially underpinned by DMBs’ balance sheet constraints, manifesting in an increased

Curr.
Dem. Dep
Sav and Time Dep.

Figure 4.3a: RM Growth and
Contribution from NFA and NDA (%)
NDA
NFA
RM growth (y-on-y)

Figure 4.3b: BoG NDA and its Sources (%
Contributions)
NCG
NC_DMBs
OMO Ster. A/c

Monetary Policy Report, BOG Research Department – May 2024 20 | P a g e

PUBLIC
PUBLIC
portfolio of non-performing loans and relatively weaker capital buffers, which were induced by the DDEP.
The tight monetary stance also contributed to the sluggish pace of growth in credit.

The top five sectors with significant share of credit flows were: services (33.9%); import trade (29.6%);
transport, storage, and communication (14.9%); commerce and finance (12.2%); and manufacturing (6.1%)
Outstanding credit to the private sector at end-April 2024 was GH¢71.86 billion, compared with GH¢64.88
billion at end-April 2023. In real terms, credit to the private sector contracted by 11.4 percent, relative to a
15.2 percent contraction recorded over the same comparative period in 2023.


Source: Bank of Ghana Source: Bank of Ghana


4.4 Money Market Developments
Developments in interest rates broadly showed an upward trend at the short end of the yield curve. Rates at
the longer-dated segment of the market, however, remained stable. The 91-day and 182-day Treasury bill
rates increased to 25.68 percent and 28.03 percent, respectively, in April 2024, from 19.67 percent and
22.29 percent, respectively, in the corresponding period of 2022. Similarly, the rate on the 364-day
instrument increased to 28.64 percent in April 2024, from 27.04 percent in April 2023.

The Interbank Weighted Average Rate (IWAR) increased to 28.68 percent in April 2024, from 25.89
percent in April 2024, consistent with the trajectory of the monetary policy rate. In contrast, the average
lending rates of banks declined marginally to 31.25 percent in April 2024, from the 31.66 percent recorded
in the corresponding period of 2023.


Figure 4.4b: Annual Growth in Real
Private Sector Credit (%)
RGPSC
TREND
Figure 4.4a: Shares in Annual Flow of
Credit to the Private Sector (%)
Apr-23
Apr-24

Monetary Policy Report, BOG Research Department – May 2024 21 | P a g e

PUBLIC
PUBLIC
Source: Bank of Ghana Source: Bank of Ghana


4.5 Stock Market Developments
The Ghana Stock Exchange Composite Index (GSE-CI) recorded a year-on-year gain of 34.5 percent to
3687.09 points in April 2024. The performance of the GSE-CI was underpinned by improved demand for
equities, driven by some recovery in the profitability of listed financial institutions. In addition, adverse
shocks to bond prices and the closure of the bond market on account of the DDEP have induced some shifts
in favour of equities. The main sectors that contributed to the gains were food and beverages,
manufacturing, distribution, finance, IT and agriculture.

The GSE-Financial Stocks Index (GSE-FI) closed at 2044.36 points, reflecting a gain of 16.3 percent,
compared to a loss of 20.4 percent over the same comparative period in 2023. The gain in 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.

Total market capitalisation of the GSE at the end of April 2024 was GH¢80.32 billion, representing a yearon-year growth of 17.6 percent. The increase in market capitalisation was mainly driven by appreciation in
share prices in the food & beverages, manufacturing, distribution, finance, IT and agriculture sectors.

Table 4.1: Performance of Ghana Stock Exchange

Source: Ghana Stock Exchange and Bank of Ghana Staff Calculations


Y-T-D
Apr-22
Dec-22
Apr-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24

GSE CI

GSE FI

Market Capitalization

Changes
Y-O-Y

Figure 4.5: MPR, Interbank and T-bill
Rates (%)
Reverse Repo(Daily)
MPR
Depo Rate

Figure 4.6: Yield Curve (%)
Apr-23
Apr-24

Monetary Policy Report, BOG Research Department – May 2024 22 | P a g e

PUBLIC
PUBLIC

Source: Ghana Stock Exchange and Bank of Ghana Staff Calculations


4.6 Conclusion
Compared to the previous year, developments in April 2024 points to a decline in the annual growth of
monetary aggregates. The decline is attributable to considerable moderation in the pace of growth in the
NDA of depository corporations. Nominal private sector credit also broadly declined on a year-on-year
basis due to high non-performing loans, and tight monetary policy. Interest rates in April broadly increased
at the short end of the yield curve, although they remained stable at the longer-dated segment of the market.
Underpinned by a tight monetary policy stance and sustained liquidity withdrawal, the weighted average
interbank rate increased.

Figure 4.7a: GSE Composite Index

Figure 4.7b: GSE Financial Stocks
Index

Monetary Policy Report, BOG Research Department – May 2024 23 | P a g e

PUBLIC
PUBLIC
5. Banking Sector Developments

5.0 Highlights
The banking sector posted a sturdy performance during the first four months of 2024, on the back of
sustained improvement in deposits and other sources of funding. The Financial Soundness Indicators (FSIs)
remained healthy, with improved solvency and liquidity measures, while profitability indicators remained
robust. The industry’s Non-Performing Loans (NPL) ratio, however, worsened during the period under
review.

5.1 Banks’ Balance Sheet
Total assets of the banking sector increased by 28.8 percent to GH¢306.8 billion at end-April 2024, relative
to 22.6 percent growth recorded in April 2023. Foreign assets grew by 47.5 percent in April 2024, from
64.4 percent in April 2023, while domestic assets went up by 27.1 percent in April 2024, up from 19.9
percent in April 2023. Subsequently, the share of foreign assets in total assets increased to 9.5 percent from
8.3 percent, while that of domestic assets declined to 90.5 percent from 91.7 percent.

Investments picked-up by 27.1 percent to GH¢105.9 billion in April 2024, significantly up from a
contraction of 0.6 percent in April 2023, as banks recorded growth in both short-term and long-term
instruments. The share of investments in total assets, however, declined to 34.5 percent in April 2024 from
35.0 percent in April 2023. Investments in securities grew by 22.0 percent in April 2024, after contracting
by 24.2 percent a year earlier on account of restructuring of long-term instruments due to the Domestic
Debt Exchange Programme (DDEP). Growth in short-term bills, on the other hand, moderated to 34.6
percent in April 2024, after growing sharply by 86.6 percent in April 2023.

Credit growth remained sluggish in April 2024, with a slower annual growth in gross loans and advances
of 7.7 percent in April 2024, down from 20.2 percent registered in April 2023. Growth in net loans and
advances (gross loans adjusted for provisions and interest in suspense) was also lower, at 0.9 percent in
April 2024, down from 16.8 percent recorded during the corresponding period of last year.

The strong growth in assets was funded by significant growth in total deposits and other funding sources.
Deposits, the main source of funding for the banking sector, picked up by 28.4 percent to GH¢236.2 billion
in April 2024, compared to 44.7 percent growth recorded in April 2023. The foreign currency component
of deposits increased by 26.0 percent to GH¢75.7 billion in April 2024, against a growth of 63.3 percent a
year ago. Borrowings also increased by 22.5 percent to GH¢19.5 billion in April 2024, up from a contraction
of 38.5 percent recorded in April 2023. This reflected an uptick in both short-term foreign and domestic
borrowings, while long-term domestic and foreign borrowings contracted during the period.

Banks’ shareholders’ funds (comprising paid-up capital and reserves) continued to improve on account of
a rebound in profits across the industry. Total shareholders’ funds increased by 46.1 percent to GH¢30.8
billion at end-April 2024, compared to a contraction of 20.5 percent recorded a year ago.


Monetary Policy Report, BOG Research Department – May 2024 24 | P a g e

PUBLIC
PUBLIC
Table 5.1: Key Developments in DMBs' Balance Sheet
Apr-23
Feb-24
Apr-24
Apr-23
Feb-24
Apr-24
Apr-23
Apr-24
TOTAL ASSETS
238,200.2

287,004.4

306,785.1

22.6

21.0

28.8

100.0

100.0

A. Foreign Assets
19,736.1

25,124.0

29,114.9

64.4

29.5

47.5

8.3

9.5

B. Domestic Assets
218,464.1

261,880.5

277,670.2

19.9

20.3

27.1

91.7

90.5

Investments
83,312.5

112,724.9

105,930.0

(0.6)

32.4

27.1

35.0

34.5

i. Bills
33,361.8

53,631.9

44,903.7

86.6

67.6

34.6

14.0

14.6

ii. Securities
49,816.9

58,837.1

60,763.4

(24.2)

11.2

22.0

20.9

19.8

Advances (Net)
62,237.8

61,534.5

62,810.4

16.8

(2.7)

0.9

26.1

20.5

of which Foreign Currency
22,028.6

21,716.7

22,602.9

30.7

(5.9)

2.6

9.2

7.4

Gross Advances
72,359.0

74,789.0

77,938.6

20.2

1.8

7.7

30.4

25.4

Other Assets
14,854.3

17,079.7

21,229.5

54.3

14.3

42.9

6.2

6.9

Fixed Assets
7,362.1

8,298.3

8,401.6

37.5

14.8

14.1

3.1

2.7

TOTAL LIABILITIES AND CAPITAL
238,200.2

287,004.4

306,785.1

22.6

21.0

28.8

100.0

100.0

Total Deposits
183,994.6

224,383.1

236,260.2

44.7

25.5

28.4

77.2

77.0

of which Foreign Currency
60,082.5

72,080.6

75,692.5

63.3

18.6

26.0

25.2

24.7

Total Borrowings
15,893.3

14,455.0

19,469.0

(38.5)

(20.0)

22.5

6.7

6.3

Foreign Liabilities
8,120.1

6,689.3

6,547.5

(48.2)

(31.1)

(19.4)

3.4

2.1

i. Short-term borrowings
1,762.7

2,248.8

1,999.0

(79.8)

(3.4)

13.4

0.7

0.7

ii. Long-term borrowings
4,673.8

3,780.7

3,801.5

(16.4)

(35.4)

(18.7)

2.0

1.2

iii. Deposits of non-residents
1,423.8

658.0

731.4

4.3

(56.1)

(48.6)

0.6

0.2

Domestic Liabilities
208,121.5

249,342.9

268,542.4

37.8

22.0

29.0

87.4

87.5

i. Short-term borrowing
8,015.5

7,070.3

12,444.3

(22.8)

(16.7)

55.3

3.4

4.1

ii. Long-term Borrowings
1,441.3

1,355.2

1,224.3

25.3

(3.7)

(15.1)

0.6

0.4

iii. Domestic Deposits
182,570.7

223,725.0

235,528.8

45.1

26.2

29.0

76.6

76.8

Other Liabilities
16,378.2

18,051.2

20,217.8

11.3

3.1

23.4

6.9

6.6

Paid-up capital
10,432.1

13,039.2

13,033.2

2.6

25.1

24.9

4.4

4.2

Shareholders' Funds
21,101.1

30,114.7

30,837.7

(20.5)

34.6

46.1

8.9

10.1

(GH ¢'million)
Y-on-Y Growth (%)
Shares (%)

Source: Bank of Ghana

5.1.1 Asset and Liability Structure
The asset structure of the industry’s balance sheet in April 2024 reflected banks’ preference for less risky
assets. Cash and bank balances replaced investments as the largest component of total assets, with a share
of 35.2 percent in April 2024, up from 29.3 percent in April 2023, as banks’ accumulated reserves in
compliance with the new Cash Reserve Ratio (CRR) requirements. Investments (comprising bills,
securities, and equity) was the second largest component of banks’ assets as at April 2024, although its
share in total assets declined to 34.5 percent, marginally down from 35.0 percent in April 2023. Investments,
and cash and bank balances together accounted for 69.7 percent of total assets in April 2024, compared to
a share of 64.3 percent in April 2023. Net loans and advances constituted the third-largest component of
total assets, recording a decreased share of 20.5 percent, from 26.1 percent a year earlier. Non-earning
assets (fixed assets and other assets) in banks’ total assets recorded a marginal increase in share to 9.8
percent, from 9.6 percent during the review period.

On the liability side, the share of deposits in banks’ liabilities and shareholders’ funds declined marginally
to 77.0 percent in April 2024, from 77.2 percent recorded in the corresponding period of last year. The
share of borrowings also dipped during the period under review to 6.3 percent from 6.7 percent, despite the
growth in total borrowings. The share of shareholders’ funds in banks’ funding structure, however, grew
by 10.1 percent, up from 8.9 percent, consistent with the strong growth of shareholders’ funds. The
proportion of other liabilities declined to 6.6 percent, down from 7.2 percent a year earlier.


Monetary Policy Report, BOG Research Department – May 2024 25 | P a g e

PUBLIC
PUBLIC
5.1.2 Share of Banks’ Investments
Securities (long-term debt instruments) constituted the largest component of banks’ investment portfolio,
although its share declined to 57.4 percent in April 2024, from 59.8 percent in April 2023. The share of
short-term bills in total investments, however, increased to 42.4 percent, from 40.0 percent in April 2023.
The share of equity investments remained negligible and unchanged at 0.2 percent during the period under
review.

5.2 Credit Risk
The industry’s asset quality deteriorated in April 2024 relative to April 2023, reflecting the lagged effect of
the macroeconomic challenges in 2022. The elevated credit risk was broad-based, with increases in NPL
ratios in all economic sectors in April 2024 compared to April 2023.

5.2.1 Credit Portfolio Analysis
The stock of gross loans and advances (domestic and foreign) recorded a slower annual growth of 7.7
percent to GH¢77.9 billion at end-April 2024, compared to 20.2 percent growth recorded in the previous
year. In terms of components, private sector credit (comprising credit to private enterprises and households)
posted a lower growth of 10.8 percent to GH¢71.9 billion in April 2024, from 19.8 percent in the
corresponding period of last year. Public sector credit, on the other hand, contracted by 18.7 percent to
GH¢6.1 billion at end-April 2024, after increasing by 23.9 percent in April 2023. Accordingly, the share of
private sector credit in total credit rose to 92.2 percent in April 2024, from 88.8 percent in April 2023, while
that of public sector credit declined to 7.8 percent, from 11.2 percent a year earlier.

In terms of the distribution of credit by sectors, the services sector accounted for the largest share of 33.2
percent as at end-April 2024 (33.7 percent in April 2023), followed by the commerce and finance sector
with a share of 23.0 percent (20.8 percent in April 2023), while the manufacturing sector had a share of
10.6 percent (10.7 percent in April 2023). Together, these sectors accounted for 66.7 percent of total credit
in April 2024 (compared with 65.2 percent in April 2023). The mining and quarrying sector remained the
lowest recipient of industry credit, with its share of 3.2 percent (unchanged from the previous year).

5.2.2 Off - Balance Sheet Activities
Off-balance sheet transactions (largely trade finance and guarantees) increased during the review period.
Contingent liabilities grew by 23.6 percent to GH¢24.4 billion as at end-April 2024, from GH¢19.7 billion
as at end-April 2023 (a contraction of 3.8 percent). Notwithstanding the growth in contingent liabilities, the
ratio of contingent liabilities to total liabilities declined to 8.8 percent in April 2024, from 9.1 percent in the
previous year.

5.2.3 Asset Quality
The industry’s asset quality declined during the period under review. The industry’s NPL ratio rose to 25.7
percent in April 2024, from 18.0 percent in April 2023. When adjusted for the fully provisioned loan loss
category, the industry’s NPL ratio also increased to 11.1 percent from 7.6 percent, reflecting increasing
stocks of all categories of nonperforming loans. The rise in the NPL ratio was attributed to the higher growth
in the NPL stock relative to the growth in total loans during the reference period. The industry’s NPL stock
increased by 53.2 percent to GH¢20.0 billion in April 2024, from GH¢13.1 billion in April 2023, reflecting
a deterioration in both domestic and foreign currency denominated loans.


Monetary Policy Report, BOG Research Department – May 2024 26 | P a g e

PUBLIC
PUBLIC
Decomposition of the NPL stock showed that the private sector accounted for the larger share of nonperforming loans, in line with its larger share of industry credit. The proportion of NPLs attributable to the
private sector, however, declined to 91.0 percent in April 2024, from 93.7 percent in April 2023, while that
of the public sector increased to 9.0 percent, from 6.3 percent a year earlier.

NPL ratios picked up across all sectors in April 2024 compared to the same period last year. The
agriculture, forestry, and fishing sector recorded the highest NPL ratio of 58.7 percent (from 26.9 percent
a year earlier) followed by the transportation, storage, and communications sector with 49.0 percent (an
increase from 21.5 percent a year ago). That of the construction sector rose to 41.3 percent (from 33.8
percent in 2023) to round up the top three sectoral NPL ratios. The mining and quarrying sector accounted
for the lowest NPL ratio of 14.4 percent in April 2024 (from 12.1 percent a year earlier).

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

Source: Bank of Ghana Staff Calculations


Monetary Policy Report, BOG Research Department – May 2024 27 | P a g e

PUBLIC
PUBLIC
5.3 Financial Soundness Indicators
Notwithstanding the increase in the NPL ratio during the review period, other key financial soundness
indicators (FSIs) as at April 2024 points to a liquid and profitable sector with improving capital buffers.

Figure 5.2: Key Financial Soundness Indicators (FSI

Source: Bank of Ghana Staff Calculations


5.3.1 Liquidity Indicators
The industry’s liquidity position remained robust in April 2024, with improvements in the core measures
following the increase in the CRR requirement. The ratio of core liquid assets (mainly cash and due from
banks) to total deposits improved to 45.7 percent in April 2024, from 38.0 percent in April 2023, while the
ratio of core liquid assets to total assets picked up to 35.2 percent from 29.3 percent. The ratio of broad
liquid assets to total deposits also rose to 90.4 percent in April 2024, from 83.2 percent in April 2023, while
the ratio of broad liquid assets to total assets grew to 69.6 percent in April 2024, from 64.3 percent in the
corresponding period in 2023.

5.3.2 Capital Adequacy Ratio
The industry’s solvency position, measured by the Capital Adequacy Ratio (CAR) adjusted for regulatory
reliefs, stood at 15.5 percent in April 2024, higher than the revised prudential minimum of 10 percent, and
above the 14.8 percent ratio recorded in April 2023. The higher CAR in April 2024 reflected the recognition
of 2023 profits posted by banks for purposes of CAR computation, as well as the on-going recapitalisation
of banks.


Monetary Policy Report, BOG Research Department – May 2024 28 | P a g e

PUBLIC
PUBLIC
5.3.3 Profitability
The banking industry remained profitable for the first four months of 2024, recording higher profit-beforetax and profit-after-tax in April 2024 relative to the same period last year, although growth in both profitbefore-tax and profit-after-tax moderated somewhat.

Generally, all income lines grew but at a slower pace in April 2024 relative to the same period last year.
Net interest income picked up by 22.4 percent to GH¢8.0 billion, lower than the growth of 41.7 percent in
April 2023. In year-on-year terms, interest income improved to GH¢12.0 billion, up from GH¢10.0 billion,
indicating a lower growth of 19.4 percent in April 2024 compared to 47.3 percent in April 2023. The slower
pace of growth in interest income was partially due to the relatively lower rates of return on money market
instruments in 2024 as against what prevailed during the first quarter of 2023, as well as a decline in lending
rates. Interest expenses also rose to GH¢4.0 billion in April 2024, representing a lower growth rate of 14.0
percent, down from 58.9 percent growth recorded in April 2023.

Net fees and commissions recorded a slower growth of 12.8 percent in April 2024, from 30.4 percent a year
ago, while other income recorded a contraction of 20.8 percent to GH¢1.6 million. The combined effect of
the changes in the different income lines culminated in an increase in the industry’s operating income to
GH¢11.1 billion in April 2024, from GH¢9.9 billion, representing a lower growth of 12.3 percent, compared
to 48.3 percent in the year prior. Similarly, gross income increased to GH¢15.1 billion in April 2024 (12.8%
year-on-year growth) from GH¢13.5 billion in April 2023 (51.0% year-on-year growth).

Cost lines recorded similar increases in April 2024 but at lower growth rates compared to the same period
in 2023.The industry’s operating expenses grew by 11.9 percent in April 2024, compared to 51.5 percent
in April 2023, on the back of slower growth in staff costs and other operating (administrative) expenses.
Impairment losses on financial assets, as well as provisions for bad debt and depreciation, contracted by
20.6 percent in April 2024, compared to 41.6 percent increase in April 2023 following the completion of
phase one of the DDEP.


Monetary Policy Report, BOG Research Department – May 2024 29 | P a g e

PUBLIC
PUBLIC
Figure 5.3: Composition of Income, Cost and Borrowings

Source: Bank of Ghana Staff Calculations

Subsequently, the industry’s profit-before-tax increased by 21.1 percent during the first four months of
2024 to GH¢5.2 billion, from GH¢4.3 billion, recorded during the corresponding period in 2023. Also,
profit-after-tax grew by 24.6 percent to GH¢3.5 billion, compared to GH¢2.8 billion recorded during the
same period a year ago.

(a) Return on Assets and Return on Equity
The banking sector’s profitability indicators – namely, return-on-assets (ROA) and return-on-equity (ROE)
– moderated during the period under review, following slowdowns in growth of profit-before-tax and profitafter-tax, respectively. The ROE declined to 35.0 percent in April 2024, from 36.3 percent in April 2023,
while ROA was marginally lower at 5.4 percent, from 5.5 percent in April 2023.

(b) Interest Margin and Spread
Interest spreads for the banking sector widened to 4.3 percent in April 2024, from 4.0 percent in April 2023.
The increase in spreads was on the back of a marginal uptick in gross yields to 6.3 percent in April 2024,
from 6.2 percent in April 2023, while interest payable recorded a marginal decline to 2.0 percent, from 2.1
percent a year earlier. The interest margin to total assets ratio also decreased to 2.6 percent, from 2.7 percent,
while interest margin to gross income rose to 52.5 percent, from 48.3 percent, during the period under
review. The ratio of gross income to total assets (asset utilisation) declined from 5.6 percent in April 2023
to 4.9 percent in April 2024, while the profitability ratio rose from 20.9 percent to 23.1 percent.


Percent
Composition of Cost (%)
Interest Expense
Operating Expense
Total Provision
Tax

Percent
Composition of Banks' Income (%)
Investments
Loans
Commissions & Fees
Other Income

Apr-21
Apr-22
Apr-23
Feb-24
Apr-24
Banks' Borrowing by Source
(% of Total)
Domestic Borrowing
Foreign Borrowing

Apr-21
Apr-22
Apr-23
Feb-24
Apr-24
Banks' External Borrowing by Maturity
(% of Total)
Short-term borrowings
Long term borrowings

Monetary Policy Report, BOG Research Department – May 2024 30 | P a g e

PUBLIC
PUBLIC
(c) Composition of Banks’ Income
Income from investments remained the largest component of banks’ total income in April 2024, with its
share rising to 42.8 percent, up from 38.8 percent in April 2023 following the growth in total investments.
The share of interest income from loans, also, increased to 36.3 percent from 35.9 percent, during the same
review period. The share of banks’ income from fees and commissions, however, remained unchanged at
10.5 percent, while the share of income from other sources moderated to 10.4 percent from 14.8 percent.

5.3.4 Operational Efficiency
The industry’s efficiency generally improved on the back of the slowdown in growth of operating expenses
during the review period. The cost-to-income ratio declined to 76.9 percent in April 2024 from 79.1 percent
in April 2023, while cost-to-total assets ratio improved to 3.8 percent from 4.5 percent. The operational
cost-to-total assets ratio also went down to 2.5 percent in April 2024 from 3.0 percent a year earlier while
the ratio of operational cost to total income improved to 50.3 percent, from 52.8 percent.

5.3.5 Banks’ Counterparty Relationships
Total offshore balances grew by 50.2 percent to GH¢25.6 billion in April 2024, down from 64.7 percent
growth in the previous year. Industry placements with foreign counterparties recorded a significant rise of
87.5 percent, from the 33.8 percent growth recorded during the same period a year earlier. Nostro balances,
on the other hand, grew by 23.3 percent in April 2024, compared with an increase of 98.9 percent in April
2023. As a result, the ratio of offshore balances to net worth rose to 83.0 percent from 80.7 percent during
the review period.

The share of banks’ external borrowings in total borrowings declined to 29.8 percent in April 2024, from
40.5 percent in April 2023, while the share of domestic borrowings increased to 70.2 percent, from 59.5
percent in April 2023. Banks’ external borrowings was tilted towards long-term instruments, although the
share of long-term borrowings in total external borrowings declined to 65.5 percent from 72.6 percent while
the share of short-term borrowings increased to 34.5 percent from 27.4 percent.

5.4 Credit Conditions Survey
Results of the April 2024 Credit Conditions Survey indicated a marginal net easing in the overall stance on
loans to enterprises between February and April 2024, on the back of a net ease in the stance in all
components of enterprise loans. Banks projected their overall stance on enterprise loans to ease further
between May and June 2024, from a net ease in the stance on long-term loans particularly, loans to small
and medium enterprises (SMEs).

The overall stance on loans to households also eased during the April 2024 survey round from net eases in
both components of household loans (namely, loans for house purchase and consumer credit and other
lending). Over the next two months, banks project a tightening in the overall stance on loans to households,
driven largely by a net tightening of the credit stance for consumer credit.

On the demand side, the April 2024 survey further indicated a slump in overall demand for enterprise loans
due to declines in the demand for loans by large enterprises as well as short-term enterprise loans. Banks
projected a net increase in demand for corporate loans over the next two months, driven by net increases in
the demand for all categories of enterprise loans.


Monetary Policy Report, BOG Research Department – May 2024 31 | P a g e

PUBLIC
PUBLIC
Credit demand by households recorded a net increase between March and April 2024, from a net increase
in the demand for both mortgages and consumer credit and other lending. Over the next two months, banks
expect a further increase in the demand for both consumer credit and loans for house purchases to drive an
increase in the overall demand for household loans.

Figure 5.4: Credit Conditions Survey Results

Source: Bank of Ghana Staff Calculations


5.5 Conclusion and Outlook
The banking sector’s performance in April 2024 pointed to continuing recovery from the DDEP though
asset quality concerns remained a drag on the performance of the sector. The sector remained profitable
and generally efficient during the review period, with improvements in solvency reflecting the rebound in
profitability in the industry post-DDEP implementation, as well as the ongoing recapitalisation of the sector.
In the outlook, the banking industry is expected to remain stable and liquid. Recapitalisation and
enforcement of stringent credit underwriting standards, as well as intensified loan recovery efforts, remain
critical to the performance of the sector going forward.


NPR (%)
Small and Medium Enterprises
Large Enterprises
Overall Credit Stance for Enterprises
Short term enterprise loans
Long term enterprise loans
Index, a rise denotes tightening
Corporates

NPR (%)
Loans for house purchase
Consumer credit and other lending
Overall stance to Households
Index, a rise denotes tightening
Households

NPR (%)
Loan for house purchase
Loan for consumer credit
Overall Household demand for loans
Index, a rise denotes increase in demand
Households

Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23
Apr-24
Overall Demand for credit
Small and Medium Enterprises
Large Enterprises
Short term
Long term
Index, a rise denotes increase in demand
Corporates

Monetary Policy Report, BOG Research Department – May 2024 32 | P a g e

PUBLIC
PUBLIC
6. Fiscal Developments

6.0 Highlights
Fiscal performance was broadly in line with targets agreed under the International Monetary Fund (IMF)-
supported programme. Provisional data on the execution of the budget showed that the primary balance
(on commitment basis) recorded a deficit of 0.6 percent compared with a target deficit of 0.2 percent. The
overall broad budget balance (on commitment basis) also recorded a deficit of 1.8 percent of GDP
compared with a deficit target of 1.7 percent of GDP. Total revenue and grants for the period amounted to
GH¢30.4 billion (2.9 percent of GDP) compared with a programmed target of GH¢37.7 billion (3.6 percent
of GDP). Total expenditures (on commitment basis, including other outstanding payments) for the period
also amounted to GH¢49.0 billion (4.7 percent of GDP) compared with a target of GH¢55.5 billion (5.3
percent of GDP).


6.1 Total Revenue and Grants
Total Revenue & Grants for the first quarter of 2024 was GH¢30.41 billion (2.9% of GDP), lower than the
target of GH¢37.73 billion (3.6% of GDP). The outturn for revenue and grants represented 19.4 percent of
the target and reflected a year-on-year growth of 7.4 percent. During the review period, domestic revenue
totalled GH¢30,378.9 million (2.9% of GDP), below the target of GH¢37,200.8 million (3.5% of GDP).
All tax handles reflected a negative deviation.

Of the total revenue and grants, tax revenue comprising taxes on income & property, taxes on domestic
goods and services and international trade taxes, excluding oil and gas related taxes, was GH¢24.34 billion
(2.3% of GDP). The outturn was lower than the target of GH¢29.79 million (2.8% of GDP) and represented
a negative deviation of 18.3 percent.

Taxes on income and property, made up of personal income tax (PAYE), company taxes (including taxes
on oil), royalties from oil and minerals, and other direct taxes totalled GH¢9.65 billion (0.9% of GDP). This
outturn was 26.0 percent below the target of GH¢13.04 billion (1.2% of GDP), with all its components
missing their targets. This was also lower than the GH¢10.30 billion collected in the corresponding period
of 2023, reflecting a year-on-year decline of 6.3 percent.

Taxes on Domestic Goods and Services consisting of Domestic VAT, Excise Duty, GETFund Levy,
National Health Insurance Levy (NHIL) and Communication Service Tax (CST) for the review period
summed up to GH¢12.26 billion (1.2% of GDP), falling below the target of GH¢14.51 billion. On year-onyear basis, the outturn represented a growth of 23.7 percent.

Non-Tax Revenue, raked in GH¢4.57 billion, missing the target of GH¢5.71 billion by 19.9 percent but
recorded a year-on-year growth of 0.1 percent. The underperformance of non-tax revenue was mainly due
to lower than budgeted lodgements, resulting mainly from lower collection efforts by some MDAs.
Unrealised dividend payments also contributed to this development.

Taxes on international trade comprising import duties was GH¢3.77 billion and lower than the target of
GH¢4.28 billion by 12.0 percent. Revenue from taxes on international trade on a year-on-year basis grew
by 40 percent.


Monetary Policy Report, BOG Research Department – May 2024 33 | P a g e

PUBLIC
PUBLIC
Other revenue of GH¢1.12 billion failed to meet its target of GH¢1.48 billion by 23.9 percent. This was
also below the total of GH¢1.15 billion collected in the corresponding period of 2022, reflecting a year-onyear decline of 2.6 percent.

Grants received was GH¢35million, below the GH¢534.9 million programmed for the review period and
below the target by 93.5 percent. This outturn was lower than the GH¢508.3 million received in the
corresponding period of 2023.

Table 6.1: Total Revenue and Grants
Million Ghana Cedis

Provisional
Provisional
Provisional
Budget
DEVIATION
Year-onYear

Q1
Q1-Q4
Q1
Q1
OVER (+)/
BELOW (-)
GROWTH
TAX REVENUE

TAXES ON INCOME & PROPERTY

Personal

Companies

Company Taxes on Oil


Others

TAXES ON DOMESTIC GOODS AND
SERVICES

Excises

VAT

National Health Insurance Levy (NHIL)

GETFund Levy

Communication Service Tax

E-Transaction Levy

Covid-19 Health Levy

TAXES ON INTERNATIONAL TRADE

Imports Duty


TAX REFUND

SOCIAL CONTRIBUTIONS

NON-TAX REVENUE

OTHER REVENUE

DOMESTIC REVENUE

GRANTS

Project Grants


Programme Grants


TOTAL REVENUE & GRANTS

Source: Ministry of Finance

6.2 Total Expenditures
Total expenditures (including arrears clearance and discrepancy) for the review period totalled GH¢46.56
billion (4.4 % of GDP), 16.1 percent below its target of GH¢55.49 billion (5.3% of GDP) and representing
a 22.0 percent year-on-year increase.


Monetary Policy Report, BOG Research Department – May 2024 34 | P a g e

PUBLIC
PUBLIC
Compensation of Employees (including wages and salaries, pensions & gratuities, and other wage related
expenditure) was GH¢13.32 billion, lower than the target of GH¢13.95 billion. This outturn which fell short
of the target by 4.5 percent represented a 16.0 percent year-on-year growth. In terms of fiscal flexibility,
compensation of employees constituted 43.8 percent of domestic revenue mobilised during the period under
review.

Use of Goods and Services totalled GH¢1.54 billion, 16.6 percent lower than the expected target of
GH¢1,84 billion. In addition, the expense recorded was lower than the GH¢1.68 billion recorded in the
corresponding period of 2023, reflecting a year-on-year contraction of 8.5 percent.

Total interest payments of GH¢12.56 billion fell below the envisioned target of GH¢15.58 billion for the
review period. This outturn compares with GH¢10.89 billion recorded in the corresponding period of 2023.

Grants to other Government units, made up of National Health Fund, Education Trust Fund (GET Fund),
Road Fund, Energy Fund, District Assemblies Common Fund (DACF), Retention of IGFs, transfer to
GNPC, Ghana Infrastructure Fund and other earmarked funds all summed up to GH¢7.56 billion, 12.8
percent lower than the expected target of GH¢8.68 billion. Grants to other Government unit increased on a
year-on-year basis by 6.1 percent.

Capital Expenditure for the period under review was GH¢ 4.52 billion (0.4% of GDP), 62.7 percent lower
than the programmed target of GH¢12.10 billion (1.2% of GDP). Capital expenditure increased on a yearon-year basis by 4.3 percent.

Other Expenditures amounted to GH¢7.07 billion, 132.2 percent above the target of GH¢3.04 billion. Of
the total, Energy Sector Payment Shortfalls totalled GH¢6.38 billion (0.6% of GDP), higher than the
programmed target of GH¢1.89 (0.2% of GDP). Other expenditure grew on a year-on-year basis by 177.0
percent.


Monetary Policy Report, BOG Research Department – May 2024 35 | P a g e

PUBLIC
PUBLIC

Table 6.2: Total Expenditures
Million Ghana Cedis

Provisional
Provisional
Provisional
Budget
DEVIATION
Year-onYear

Q1
Q1-Q4
Q1
Q1
OVER (+)/
BELOW (-)
GROWTH
Compensation of Employees

Wages & Salaries

Social Contributions

Use of Goods and Services

Interest Payment

Domestic

External (Due)

Subsidies


Grants to Other Government
Units

Social Benefits


Other Expenditure

o/w Energy Sector Payment
Shortfalls

Capital Expenditure

Domestic financed

Foreign financed

TOTAL EXPENDITURE

Source: Ministry of Finance


6.3 Budget Balance and Financing
Government budgetary operations resulted in an overall budget deficit of 1.8% of GDP on commitment
basis for the period of Jan-March 2024. This was slightly higher than the targeted deficit of 1.7 % of GDP.
The primary balance recorded a deficit of 0.6 percent of GDP, against a targeted primary surplus of 0.2
percent of GDP. The overall fiscal deficit was largely financed from domestic sources. Domestic financing
(net) was GH¢15.00 billion (1.4% of GDP), and substantially higher than the GH¢13.39 billion (1.6% of
GDP) recorded in the same period in 2023. Foreign financing recorded a net inflow of GH¢13.0 billion
(1.2% of GDP), higher than the envisioned repayment target of GH¢3.43 billion (0.3 % of GDP).


Monetary Policy Report, BOG Research Department – May 2024 36 | P a g e

PUBLIC
PUBLIC

Table 6.3: Budget Balance and Financing
Million Ghana Cedis

Prov.
Prov
Prov.
Prog.
DEVIATION
Y-O-Y

Q1
Q1-Q4
Q1
Q1
OVER (+)/
BELOW (-)
GROWTH
Revenue & Grants

Expenditure

Overall balance (commitment)

(% of GDP)


Road Arrears (net change)

o/w Clearance of Arrears

o/w Clearance Outstanding Payments


o/w Payables build-up


o/w Outstanding payables build-up reported in
GIFMIS


Overall balance (cash)

(% of GDP)


Discrepancy


(16.7)
Overall balance (incl. Divestiture and Discrepancy)

(% of GDP)


Financing

Foreign (net)

Borrowing

Project loans

Programme Loans


Sovereign Bond


Amortisation (due)

Domestic (net)

Banking

Bank of Ghana


(274.5)
o/w SDR


Comm. Banks

Non-banks


(511.3)
Other Domestic


o/w Capitalised Interest from DDEP


o/w Domestic Standard Loan


Other Financing


Other Programme Financing


Other Domestic Financing


Ghana Petroleum Funds

Transfer to Ghana Petroleum Funds

o/w Stabilisation Fund

o/w Heritage Fund

Transfer from Stabilisation Fund


Sinking Fund


Contingency Fund


Nominal GDP (Including Oil)


Nominal GDP (Excluding oil)


Source: Ministry of Finance

Monetary Policy Report, BOG Research Department – May 2024 37 | P a g e

PUBLIC
PUBLIC
6.4 Public Debt Analysis
The stock of public debt at end-February 2024 stood at GH¢658.6 billion, showing an increase of GH¢47.4
billion over the end-December 2023 stock of GH¢611.2 billion. This was due to the adjustment of the
December stock to include Bank of Ghana’s Overdraft of GH¢37.9 billion to Government, which was
securitized in December 2022. In terms of GDP, the total public debt at end-February 2024 stood at 62.7
percent, lower than the 72.6 percent recorded in December 2023.

Table 6.4: Public Debt

Source: Bank of Ghana and Ministry of Finance

6.5 Conclusion
Budget execution for the first quarter of 2024 showed expenditures outpacing revenue growth in the first
quarter, reflecting the frontloading of IPP arrears payments. Government budgetary operations resulted in
an overall budget deficit of 1.8 percent of GDP on commitment basis for the first quarter of the year. This
was slightly higher than the targeted deficit of 1.7 percent of GDP. The primary balance also recorded a
deficit of 0.6 percent of GDP, against a targeted primary surplus of 0.2 percent of GDP. Maintaining strict
fiscal discipline for the rest of the year will be crucial to strengthen confidence in the economy.

Feb 2024 -
Dec 2023
DECEMBER JANUARY
FEBRUARY
CHANGE
TOTAL DOMESTIC DEBT (GH¢million)

SHORT TERM

MEDIUM-TERM

LONG-TERM

STANDARD LOANS
965.8

937.7
-28.1
HOLDINGS OF DOMESTIC DEBT (GH¢millio 259,190.00
267,509.00
277,734.90
18,544.90
BANKING SYSTEM

NON-BANK

FOREIGN SECTOR (Non-Resident)

TOTAL EXTERNAL(US$million)

MULTILATERAL

BILATERAL

COMMERCIAL

TOTAL EXTERNAL DEBT (GH¢million)

TOTAL PUBLIC DEBT (GH¢million)

EXCHANGE RATE (End Period Selling MOF)
11.6488
12.0186
12.4024
MEMORANDUM ITEMS
NOMINAL GDP (GH¢million)
841,632.90
1,050,978.30
1,050,978.30
TOTAL DEBT /GDP RATIO (%)
72.62
60.51
62.67
EXTERNAL DEBT/GDP
41.7

36.2
DOMESTIC DEBT/GDP
30.9
25.5
26.5
EXTERNAL DEBT/TOTAL DEBT
57.4
57.8
57.7
DOMESTIC DEBT/TOTAL DEBT
42.6
42.2
42.3

Monetary Policy Report, BOG Research Department – May 2024 38 | P a g e

PUBLIC
PUBLIC
7. Price Developments

7.0 Highlights
Global headline inflation remains high due to a resurgence in crude oil prices and increasing prices in the
services sector. In Ghana, the disinflation process remained sluggish over the first quarter of the year.
Inflation, which declined to 23.1 percent in December 2023, moved up to 25.8 percent by the end of the
first quarter of 2024 largely on the back of rising food inflation. In April 2024, Inflation eased to 25.0
percent on account of improvements in the supply of seasonal food crops.

7.1 Global Price Developments
In 2024, the pace of disinflation has somewhat slowed down due to rising prices in the services sector and
a resurgence in crude oil prices as OPEC+ cut production. Despite the headwinds, inflation is projected to
decline steadily on the back of a tighter monetary policy stance, softening labour market conditions, and
the waning effects of past shocks.

Advanced Economies
The annual inflation rate in the United States eased to 3.4 percent in April 2024 from 3.5 percent in March.
It remained stable for food and slowed for shelter, while prices continued to decline for new vehicles, used
cars and trucks. Similar to headline inflation, core inflation slowed to 3.6 percent, down from 3.8 percent
in both March and February.

Headline inflation in the United Kingdom eased to 2.3 percent in April 2024, from 3.2 percent in March,
due to a decline in gas and electricity costs as the Office of Gas and Electricity Markets (Ofgem) placed an
energy price cap in April. Prices also slowed for food, recreation, and culture. The annual core inflation
rate in the UK decelerated for the third consecutive month to 3.9 percent in April 2024, compared to 5.1
percent in January 2024.

In the Euro Area, annual inflation was confirmed at 2.4 percent in April 2024, same as the figure recorded
in March. Prices for services, energy and non-energy industrial goods slowed during the period, while prices
of food, alcohol, and tobacco rose slightly. Core inflation rate, which excludes energy, food, alcohol, and
tobacco, fell to 2.7 percent in April 2024 from 2.9 percent in the previous month, marking the lowest level
since February 2022.

In Japan, annual inflation declined to 2.5 percent in April 2024, from 2.7 percent in the previous month,
marking the second consecutive month of moderation. Food prices saw their most modest rise in nearly a
year and a half, while prices eased for furniture and household utensils, healthcare, education and culture.
In line with developments in headline inflation, core inflation dropped to 2.2 percent in April from 2.6
percent in March.

Emerging Market Economies
China's annual inflation rose to 0.3 percent in April 2024 from 0.1 percent in March 2024 on the back of an
ongoing recovery in domestic demand. Non-food inflation accelerated, fuelled by rising prices for clothing,
housing, health, and education. Additionally, transportation costs increased due to recent utility price hikes,
including natural gas and train fares. Core consumer inflation, which excludes the cost of food and energy,
also increased to 0.7 percent in April from 0.6 percent in March.


Monetary Policy Report, BOG Research Department – May 2024 39 | P a g e

PUBLIC
PUBLIC
In Brazil, annual inflation decreased slightly to 3.7 percent in April 2024 from 3.9 percent in the previous
month. This marked the seventh consecutive drop in Brazil's inflation rate, bringing price growth closer to
the central bank’s target of 3.5 percent and increasing the likelihood of further rate cuts. Inflation
decelerated for housing, utilities, and transportation, despite the sharp increase in fuel prices and healthcare
costs.

Annual inflation in Turkey increased to 69.8 percent in April from 68.5 percent in the previous month,
marking the highest reading since November 2022. This rise was primarily driven by higher prices of
housing and utilities, as well as transportation. Additionally, inflation increased for clothing and footwear,
alcoholic beverages and tobacco, furnishings, household equipment, and routine maintenance, as well as
hotels, cafes, and restaurants. Core inflation also increased slightly to 75.8 percent in April, from 75.2
percent in the previous month.

Sub-Saharan Africa
South Africa's annual inflation rate, which was within the central bank's target range of 3-6 percent in
March, eased to 5.2 percent in April 2024, from 5.3 percent in the prior month. Prices primarily softened
for food and non-alcoholic beverages, with most sub-categories experiencing lower annual inflation rates,
except for vegetables, fruit, and hot beverages. Slower price growth was also recorded in other sub-groups,
including miscellaneous goods and services, alcoholic beverages and tobacco, and housing and utilities.
Core inflation rate, which excludes volatile items such as food and non-alcoholic beverages, fuels, and
energy, fell to 4.6 percent in April 2024, from 4.9 percent in the prior month.

Nigeria’s headline inflation rate continued its ascent, reaching 33.7 percent in April 2024, up from 33.2
percent in the prior month. The increase in inflation was driven by increases in the prices of housing,
utilities, food and transportation arising from renewed weakness in the naira and removal of fuel subsidies.
The annual core inflation rate, which excludes prices of farm produce and energy, increased to 26.8 percent
in April from 25.9 percent in March 2024.

Source: Trading Economics Source: Trading Economics


-2
-1

Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Figure 7.1: Inflation in Advanced
Economies (%)
US
UK
Japan

-2

Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Figure 7.2: Inflation in Emerging Markets
Economies (%)
China
Brazil

Monetary Policy Report, BOG Research Department – May 2024 40 | P a g e

PUBLIC
PUBLIC


Source: Trading Economics

7.2 Domestic Inflation
On the domestic front, the pace of disinflation remained sluggish throughout the first quarter of the year.
Headline inflation, which had decreased to 23.1 percent in December 2023, rose to 25.8 percent by March
2024 largely on the back of food inflation. In April, however, headline inflation eased to 25.0 percent due
to improvements in the supply of seasonal food crops. Food inflation declined to 26.8 percent in April 2024,
from 29.6 percent in March 2024, while non-food inflation increased to 23.5 percent, from 22.6 percent
during the same period. Core inflation, which excludes prices of energy and utility items, moderated to 24.8
percent in April 2024 from 26.3 percent in March.

In April 2024, month-on-month headline inflation increased to 1.8 percent from 0.8 percent in March 2024
During the same period, monthly food inflation rose to 2.1 percent from 1.0 percent, while monthly nonfood inflation increased to 1.5 percent from 0.7 percent in March.

7.3 Inflation Risk Assessment and Outlook
The latest forecast shows a slightly elevated inflation profile on account of recent exchange rate pressures
and adjustments in transportation fares. However, the projections show that inflation will remain within the
monetary policy consultation clause of 13-17 percent at the end of the year. These forecasts are contingent
on sustaining a tight monetary policy stance, including aggressive liquidity management operations. Risks
such as upward adjustment in transportation fares, crude oil price increases, utility tariff adjustments and
unfavourable forex market dynamics will need to be monitored closely. These risks are expected to be
moderated by tight monetary conditions, improved reserve buffers and efficient liquidity management
strategies.

Decision on the Monetary Policy Rate
At the 118th Meeting, the Monetary Policy Committee acknowledged the slightly elevated inflation profile
and the need to closely monitor the risks ahead. Given these considerations, the Committee decided to
maintain the policy rate at 29.0 percent.

-4

Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Figure 7.3: Inflation in Sub-Saharan Africa (%)
South Africa
Nigeria
Ghana

Monetary Policy Report, BOG Research Department – May 2024 41 | P a g e

PUBLIC
PUBLIC

Source: GSS and Bank of Ghana Staff Calculations Source: GSS and Bank of Ghana Staff Calculations


Source: GSS and Bank of Ghana Staff Calculations Source: Bank of Ghana Staff Calculations

Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Figure 7.4: Domestic Headline Inflation
and Target Band (%)
Headline
Inflation
Lower band

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
Figure 7.5: Headline vs Core Inflation
(%)
Core 1 (Excluding
Fuel, and Utilities)
Headline Inflation


Headline
Food
Non-food
Figure 7.6 Month-on-Month Inflation (%)
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
-15
-10
-5

Q1:14
Q2
Q3
Q4
Q1:15
Q2
Q3
Q4
Q1:16
Q2
Q3
Q4
Q1:17
Q2
Q3
Q4
Q1:18
Q2
Q3
Q4
Q1:19
Q2
Q3
Q4
Q1:20
Q2
Q3
Q4
Q1:21
Q2
Q3
Q4
Q1:22
Q2
Q3
Q4
Q1:23
Q2
Q3
Q4
Q1:24
Q2
Q3
Q4
Q1:25
Q2
Q3
Q4
Q1:26
Q2
Q3
Q4
Q1:27
Q2
Q3
Q4
Figure 7.7 Inflation Fan Chart (%)
90%
60%
30%

Monetary Policy Report, BOG Research Department – May 2024 42 | P a g e

PUBLIC
PUBLIC
Appendix


Table A.1: Sources of Growth in M2+ (GH¢ million, unless otherwise stated)

Source: Bank of Ghana Staff Caluculations


Monetary Policy Report, BOG Research Department – May 2024 43 | P a g e

PUBLIC
PUBLIC


Table A.2: Sources of Growth in Reserve Money (GH¢ million, unless otherwise stated)

Source: Bank of Ghana Staff Caluculations

Table A.3: Asset and Liability Structure of the Banking Sector
Apr-21 Apr-22 Apr-23 Feb-24 Apr-24
Components of Assets (% of Total)
Cash and Due from Banks
18.6

21.7

29.3

30.2

35.2

Investments
47.0

43.2

35.0

39.3

34.5

Net Advances
26.5

27.4

26.1

21.4

20.5

Others
7.9

7.7

9.6

9.1

9.8

Components of Liabilities and Shareholders' Funds (% of Total)
Total Deposits
67.3

65.5

77.2

78.2

77.0

Total Borrowings
10.0

13.3

6.7

5.0

6.3

Shareholders' Funds
15.2

13.7

8.9

10.5

10.1

Other Liabilities
7.5

7.6

7.2

6.3

6.6


Source: Bank of Ghana Staff Calculations


Apr-22
Dec-22
Apr-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
1 Net Foreign Assets ( NFA)

2 Net Domestic Assets ( NDA)

of which:
3 ow: Claims on government (net)

4 Claims on DMB's (net)

5 OMO Sterilisation Account.
(4888.1)
(7725.5)
(19524.1) (24795.4) (30177.2) (29850.4) (22605.9) (17663.1)
6 Reserve Money ( RM)

7 ow:Currency

8 DMB's reserves

9 Non-Bank deposits

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

11 Net Domestic Assets

12 ow: Claims on government (net)

13 Claims on DMB's (net)

14 OMO Sterilisation Account.

15 Reserve Money ( RM)

16 ow:Currency

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

18 Net Domestic Assets ( NDA)

19 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)


Monetary Policy Report, BOG Research Department – May 2024 44 | P a g e

PUBLIC
PUBLIC
Table A.4: Credit Growth
Apr-22
Apr-23
Feb-24
Apr-24
Apr-23 Apr-24
Public Sector
6,038.92


Private Sector
54,168.75


- Private Enterprises
39,077.81


o/w Foreign
5,390.06


Indigenous
33,687.76


- Households
13,186.98


Gross Loans

Gh¢million
y/y growth (%)

Source: Bank of Ghana Staff Calculations


Table A.5: Contingent Liabilities
Apr-21
Apr-22
Apr-23
Feb-24
Apr-24
Contingent Liabilities (GH¢million)
13,870.0

20,116.1

19,743.0

23,348.2

24,400.1

Growth (y-o-y)
26.6

45.0

(3.8)

15.4

23.6

% of Total Liabilities

Source: Bank of Ghana Staff Calculations


Table A.6: Distribution of Loans and 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

Share in NPLs
Share in Total
Credit
Share in NPLs
Apr-22
Apr-23
Feb-24
Apr-24
Share in Total
Credit
Share in NPLs Share in Total Credit
Share in NPLs
Share in Total
Credit

Source: Bank of Ghana Staff Calculations


Monetary Policy Report, BOG Research Department – May 2024 45 | P a g e

PUBLIC
PUBLIC

Table A.7: Liquidity Ratios
Apr-21
Apr-22
Apr-23
Feb-24
Apr-24
Liquid Assets (Core) - (GH¢'million)
28,902.7

42,150.6

69,897.1

86,707.4

107,918.8

Liquid Assets (Broad) -(GH¢'million)
101,939.4

125,785.5

153,075.8

199,176.4

213,585.9

Liquid Assets to total deposits (Core)-%
27.6

33.1

38.0

38.6

45.7

Liquid Assets to total deposits (Broad)- %
97.2

98.9

83.2

88.8

90.4

Liquid assets to total assets (Core)- %
18.6

21.7

29.3

30.2

35.2

Liquid assets to total assets (Broad)- %
65.5

64.7

64.3

69.4

69.6


Source: Bank of Ghana Staff Calculations


Table A.8: Profitability Indicators (%)
Apr-22 Apr-23 Feb-24 Apr-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


Monetary Policy Report, BOG Research Department – May 2024 46 | P a g e

PUBLIC
PUBLIC
Table A.9: DMBs Income Statement Highlights
Apr-22
Apr-23
Feb-24
Apr-24
Apr-23
Feb-24
Apr-24
Interest Income
6,819.8

10,048.7

5,896.8

12,002.0

47.3

17.9
19.4
Interest Expenses
(2,230.7)

(3,545.3)

(1,924.3)

(4,041.7)

58.9

4.8
14.0
Net Interest Income
4,589.1

6,503.4

3,972.6

7,960.2

41.7

25.5
22.4
Fees and Commissions (Net)
1,080.0

1,408.5

785.3

1,589.2

30.4

17.7
12.8
Other Income
1,010.9

1,997.3

732.1

1,581.9

97.6

(36.6)
(20.8)
Operating Income
6,679.9

9,909.2

5,489.9

11,131.3

48.3

10.1
12.3
Operating Expenses
(2,963.1)

(4,487.8)

(2,421.7)

(5,020.0)

51.5

14.3
11.9
Staff Cost (deduct)
(1,604.2)

(2,112.1)

(1,206.0)

(2,526.9)

31.7

17.6
19.6
Other operating Expenses
(1,358.9)

(2,375.7)

(1,215.7)

(2,493.1)

74.8

11.3
4.9
Net Operating Income
3,716.9

5,421.4

3,068.3

6,111.3

45.9

7.0
12.7
Total Provision (Loan losses, Depreciation &
others)
(768.3)

(1,087.7)

(619.0)

(863.4)

41.6

(28.0)
(20.6)
Income Before Tax
2,948.6

4,333.6

2,449.3

5,247.9

47.0

21.9
21.1
Tax
(1,022.2)

(1,525.3)

(836.2)

(1,748.3)

49.2

25.8
14.6
Net Income
1,926.3

2,808.3

1,613.1

3,499.6

45.8

20.0
24.6
Gross Income
8,910.6

13,454.5

7,414.2

15,173.1

51.0

8.7
12.8
(GH ¢'million)
Year-on-Year Growth (%)

Source: Bank of Ghana Staff Calculations


Table A.10: Developments in Offshore Balances
Apr-21
Apr-22
Apr-23 Feb-24
Apr-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


Monetary Policy Report, BOG Research Department – May 2024 47 | P a g e

PUBLIC
PUBLIC
Table A.11: Fiscal indicators

Q1
Q1-Q4
Q1
Q1

OUTTURN
OUTTURN
OUTTURN
PROG
Domestic Revenue

(% of GDP)

Domestic expenditure

(% of GDP)

Domestic Primary Balance

(% of GDP)

Primary Balance (Commitment)

(% of GDP))

Primary Balance (Cash)

(% of GDP)

Non-Oil Primary Balance

(% of GDP))

Overall Balance (Commitment)

(% of GDP)

Overall Balance (cash, discrepancy)

(% of GDP)

Oil Revenue

(% of GDP)

Non-Oil Revenue and Grants

(% of GDP)

Benchmark Oil Revenue

(% of GDP)

Annual Budget Funding Amount
(ABFA)

(% of GDP)

Nominal GDP

Non-Oil Nominal GDP

Source: Ministry of Finance


Monetary Policy Report, BOG Research Department – May 2024 48 | P a g e

PUBLIC
PUBLIC
Table A.12: Headline Inflation


Table A.13: CPI Components

Combined
Food
Non-food
Combined
Food
Non-food
Dec-20

Dec-21


Mar

Jun

Sep

Dec


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec


Jan

Feb

Mar

Apr

Source: Ghana Statistical Service
Weghts
Dec
Jan
Feb
Mar
Apr
May
Jun
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
(%)
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

Hotels, cafes and restaurants

Insurance and Financial services

Personal care, social protection & Miscellaneous services

Source: Ghana Statistical Service

CPI Components (%)