F


BANK OF GHANA
MONETARY POLICY REPORT


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

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

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

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


The global economy was resilient through 2024, supported by strong real income growth and a less
restrictive monetary policy stance relative to 2023. In the first few months of 2025, trade frictions arising from
an emerging tariff war, elevated global interest rates, and geopolitical tensions have heightened uncertainty about
the global growth outlook. These uncertainties have weighed negatively on consumer and business confidence,
softened investor sentiment, and increased downside risks to growth.

The disinflation path has stalled in some Advanced Economies, on the back of persistence in services
inflation, resurgence in goods inflation, and the recent tariff actions by the U.S. The imposition of additional
tariffs by the U.S. and retaliatory responses have pushed up long-term inflation expectations in some Emerging
Market Economies. In addition, the process of disinflation, which was expected to be supported by a decline in
crude oil prices, could be partly offset by the effect of the tariff increases. Against this backdrop, global inflation
is expected to remain high in the near term.

Global financial conditions have remained broadly restrictive. This has been driven by high monetary policy
rates, rising long-term bond yields, declining capital flows to Emerging Market and Developing Economies, and
volatile equity markets. The Federal Reserve, Bank of Japan, and Bank of England all kept their policy rates
unchanged in March 2025 on account of rising trade and economic uncertainty, while the European Central Bank
cut its policy rate to boost growth in the Euro Area.

On the domestic front, growth continued to rebound, exceeding initial expectations. Provisional data from
the Ghana Statistical Service estimated real GDP growth at 5.7 percent in 2024, higher than the programmed
growth rate of 4.0 percent for 2024 and the 3.1 percent recorded in 2023. Non-oil GDP grew at 6.0 percent,
compared with 3.6 percent recorded in 2023. The growth outturn in 2024 was driven by activities in the industry
and services sectors. However, growth in the agricultural sector was slower, driven by lower crop yield due to
adverse weather conditions, among other factors.

Inflation declined marginally in the first two months of 2025. The latest data released by the Ghana Statistical
Service indicates that headline inflation eased marginally from 23.8 percent in December 2024 to 23.1 percent in
February 2025, due to easing but still high non-food inflation. Food inflation has remained elevated on account
of unfavourable climatic conditions and other constraints.

The strong external sector performance in 2024 continued in early 2025, indicating a significant
improvement in the accumulation of reserves. In the first two months of 2025, the trade account recorded a
surplus due to higher export receipts relative to imports. Total exports posted 50.0 percent annual growth to reach
US$4.3 billion, driven by increased gold and cocoa exports arising from both price and volume effects. In contrast,
crude oil exports declined as output from the three oil producing fields fell. Total imports increased by 7.3 percent
year-on-year to US$2.7 billion.

The banking sector performance continued to improve. Total bank assets recorded 34.0 percent growth at the
end of February 2025, relative to 12.1 percent growth in the same period last year. With regulatory reliefs, the
banking industry’s Capital Adequacy Ratio (CAR) was higher at 14.4 percent, compared to 13.6 percent in the
same period last year. Without reliefs, CAR was 12.1 percent. The industry’s Non-Performing Loan (NPL) ratio
declined to 22.6 percent in February 2025, from 24.6 percent in February 2024. Excluding the loans in the loss
category, which are fully provisioned, the NPL ratio as at end-February 2025 was 8.9 percent. Overall, the
Financial Soundness Indicators showed broad improvements in asset growth, solvency, liquidity, efficiency, and
profitability.
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1. Global Economic Developments

1.0 Highlights
Global economic activity was resilient in 2024, supported by strong real income growth and lower
interest rates, but recent high-frequency data suggests some signs of weakness in the near term,
reflecting trade and economic policy uncertainty. The ongoing disinflationary process appears to have
stalled in some countries amid rising goods inflation and persistent services inflation. Financial
conditions remain restrictive, reflecting still high policy rates and long-term bond yields. In the local
forex market, the cedi has made some gains in recent months, on the back of liquidity support by the
Bank of Ghana.

1.1 Global Growth Developments
Global growth was resilient in 2024, supported by real income growth and the fading effects of
monetary policy restrictions. The resilience in activity was evident in both Advanced Economies and
EMDEs. However, recent developments have clouded the outlook for 2025Q1. The announced series
of tariffs by the U.S. and retaliatory tariffs by other countries and geopolitical tensions pose downside
risks to the global economy. Against these developments, trade and economic policy uncertainty have
risen sharply in recent months, contributing to declining consumer confidence across regions and a
slowdown in business investment spending. Manufacturing picked up marginally in some countries,
backed by the frontloading of new orders in anticipation of proposed tariffs.
If the announced U.S. tariffs and retaliatory tariffs persist, it may heighten uncertainty and weigh on
consumption and investment spending and global growth. The tariffs could add to trade costs, raising
final goods prices and intermediate input prices for firms, while slowing the ongoing disinflation
process. Renewed price pressures could force central banks in Advanced Economies to keep monetary
policy tighter for longer, tightening financial conditions while adding to the volatility in EMDE
currencies.
Table 1.1: Global Growth Projections (%)
Overview of the World Economic Outlook Projections
(Percent change)

Projections
2025 2026
World
3.2
3.3
3.3
Advanced Economies
1.7
1.9
1.8
United States
2.8
2.7
2.1
Euro Area
0.8
1.0
1.4
Germany
–0.2
0.3
1.1
France
1.1
0.8
1.1
Italy
0.6
0.7
0.9
Spain
3.1
2.3
1.8
Japan
–0.2
1.1
0.8
United Kingdom
0.9
1.6
1.5
Canada
1.3
2.0
2.0
Other Advanced Economies
2.0
2.1
2.3
Emerging Market and Developing Economies
4.2
4.2
4.3
China
4.8
4.6
4.5
India
6.5
6.5
6.5
Russia
3.8
1.4
1.2
Brazil
3.7
2.2
2.2
Mexico
1.8
1.4
2.0
Sub-Saharan Africa
3.8
4.2
4.2
Nigeria
3.1
3.2
3.0
South Africa
0.8
1.5
1.6
Source: OECD
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1.2 Global Price Developments
The global disinflation process has stalled due to emerging price pressures from the goods and services
sectors. Oil prices have declined in recent months, partly reflecting the decision by the OPEC+
economies to unwind production cuts gradually from April 2025. An expected slowdown in global
growth may further weigh on oil prices. However, the recent escalation of the Gaza war and attacks on
the Houthi rebels could force a pickup in oil prices in the near term. Global food prices have increased,
with the FAO Food Price Index rising in February 2025, reflecting supply constraints. In addition,
underlying inflation remained elevated, reflecting the persistence in services inflation due to strong
wage growth and a recent pickup in goods inflation. In the outlook, global inflationary pressures are
expected to linger in many economies. The impact of slower growth on inflation may be offset by the
gradual inflationary impact of tariff increases. However, oil prices may continue to moderate as OPEC+
unwinds production curbs from April 2025.

Figure 1.1: Headline Inflation Rates (%)
Source: Bank of Gana, /Trading Economics


1.3 Global Financial Markets Developments
Global financial conditions remain restrictive amid relatively high policy rates, despite ongoing easing.
Major central banks, apart from those in the Eurozone, held their policy rates steady amid ongoing trade
and geopolitical uncertainty. Policy divergence has been observed across EMDE central banks,
reflecting differences in the pace of disinflation. The expectation of higher-for-longer policy rates have
kept long-term bond yields relatively high, with equity markets cautious amid escalating trade and
economic policy uncertainty. Reflecting rising global uncertainties, portfolio flows to EMDEs stood at
US$15.9 billion in February, lower than the US$35.4 billion received in January 2025.

In the outlook, financial conditions will remain tight in the near term. Higher policy rates, long term
bond yields, and a stronger dollar could continue to keep financing conditions tight. The uncertainty
about how central banks will navigate the difficult trade-offs they face amid tariffs could trigger a
disruptive repricing of risky assets, with sharp tightening of financial conditions and an appreciation of
the dollar. The rising uncertainty, alongside a prolonged slowdown in China, could trigger a reversal of
portfolio flows to EMDEs, with implications for exchange rate stability.
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Table 1.2: Monetary Policy Stance of Selected Central Banks
Country
Policy rate -
Previous (%)
Policy Rate
Current (%)
Forecast
Inflation
January,

Inflation
February, 2025
Real rate
Infl Target
Overall
Fiscal
Deficit
(2023,%
of GDP)
GDP Growth
(Dec.2023)
Gross
Debt/GDP(
2023,%)
YTD
Depr/19th
Mar 2025
U.S
4.50
4.50
4.5


Euro Area

< 2%

UK

Japan

Russia

India

4±2%
8.2

-0.96
Brazil

4.5±1.5%
2.9
84.7
9.31
Turkey

5±2%

Malaysia

Indonesia

3.5% ± 1%
-1.6

39.6
-2.41
Chile

3±1%

Ghana
27.0
27.0

23.5
23.1
3.9
8±2%

South Africa

Nigeria

Kenya

Zambia

Morocco


69.5
5.02
Angola

Egypt

7± 2%

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


1.4 Currency Markets
On the international currency market, the U.S. dollar weakened in 2025Q1 over U.S. trade policies and
concerns of a recession. The weakness of the dollar provided some support to EMDE currencies.

In the domestic currency market, the cedi continue to make some gains on the back of muted forex
demand, increased Bank of Ghana support, improved remittances and mining inflows, and the easing
of market jitters. The cedi is expected to remain stable in the near term, reflecting a strong reserve build-
up, improved market sentiments, and the weakness of the dollar due to trade wars.

In the interbank market, the cedi depreciated by 5.3 percent, 5.9 percent, and 11.6 percent against the
dollar, the pound sterling, and the euro, respectively, on a year-to-date basis. This is against a
depreciation of 4.7 percent, 4.2 percent, and 2.9 percent against the dollar, the pound sterling, and the
euro, respectively, during the same period in 2024. The cedi was relatively more volatile during the
first 55 transaction days in 2025 compared to the same period in 2024.

Considering the currency movements of major trading partners, the cedi depreciated by 5.9 percent in
nominal trade weighted terms and 5.7 percent in forex transaction weighted terms on a year-to-date
basis. This is against a depreciation of 3.1 percent, and 4.7 percent, in nominal trade weighted terms,
and nominal foreign exchange transaction weighted terms, respectively, over the same period in 2024.
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Table 1.3: Interbank Exchange Rates
Exchange Rate Movements
US$/GHC*
Monthly
Year-to-Date
depreciation/a depreciation/
ppreciation
appreciation
GBP/GHC*
Monthly
Year-to-Date
depreciation/a depreciation/
ppreciation
appreciation
Euro/GHC*
Monthly
Year-to-Date
depreciation/ depreciation/a
appreciation ppreciation

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

Source: Bank of Ghana Staff Calculations


Table 1.4: Nominal Effective Exchange Rate

Month
2021=100
FXTWI
TWI
Monthly CHG(%)
FXTWI
TWI
Year-to-Date
FXTWI
(%)
TWI
Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Jan-25

Feb-25

Source: Bank of Ghana Staff Calculations

In real bilateral terms, the cedi depreciated by 3.6 percent, 3.2 percent, and 2.9 percent against the dollar,
the pound sterling, and the euro, respectively, on a year-to-date basis. Comparatively, for the
corresponding period in 2024, the cedi’s real exchange rate depreciated by 2.4 percent and 0.4 percent
against the dollar and the pound sterling, respectively, while appreciating by 0.63 percent against the
euro on a year-to-date basis.
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Table 1.5: Real Bilateral Exchange Rate
Month
RER Index (Jan.2021=100)
EUR
GBP
USD
MONTHLY CHANGE (Index)
EUR
GBP
USD
Year-to-Date (%)
EUR
GBP
USD
Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Jan-25

Feb-25

Source: Bank of Ghana Staff Calculations

The cedi depreciated by 3.0 percent and 3.6 percent in real trade weighted terms and real forex
transaction weighted terms on a year-to-date basis. This compares with an appreciation of 0.1 percent
in real trade weighted terms and a depreciation of 2.1 percent in real forex transaction weighted terms
for the same period in 2024.

Table 1.6: Real Effective Exchange Rate for Major Trade Partners
RTWI and FXRTWI
Month
INDEX (2021=100)
RFXTWI
RTWI
MONTHLY CHG
RFXTWI
RTWI
Year-to-Date (%)
RFXTWI
RTWI
Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Jan-25

Feb-25

Source: Bank of Ghana Staff Calculations


1.5 Global Economic Outlook and Risks
Global economic activity was resilient in 2024, supported by strong real income growth and lower
interest rates. However, there were signs of weakness in the near term, reflecting trade and economic
policy uncertainty, with risks to the global economy elevated. The evolving trade tensions may weigh
on global activity if they persist. An unexpected rise in inflation may erode real incomes and weigh on
global growth. Trade tensions may force central banks to keep policy rates in Advanced Economies
higher-for-longer. As a result, capital flows to EMDEs, including Ghana, may slow and potentially
trigger disorderly exchange rate movements.
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2. External Sector Developments

2.0 Highlights
The strong external sector performance in 2024 continued in early 2025, indicating a significant
improvement in the accumulation of reserves. The external sector outlook remains strong. This is
against the backdrop of increases in gold exports driven by sustained implementation of the Gold-for
Reserves programme, continued growth in remittance inflows, and commitment to the implementation
of policies and reforms under the IMF programme. The continued buildup of reserve buffers is
expected to support the stability of the currency.


2.1 Commodity Price Trends
Prices of Ghana’s primary exports (cocoa, gold, and crude oil) traded mixed on the international market
in February 2025. Cocoa prices dropped by 10.7 percent to US$9,946.79 per tonne in February 2025
from US$11,141.14 per tonne in January 2025, on the back of an improved outlook for production in
the 2024/25 season.

Crude oil prices also decreased by 4.3 percent to settle at an average of US$74.95 per barrel in February,
from US$78.34 per barrel in January 2025, due to concerns that U.S. tariffs on Canada, Mexico, and
China would slow economies around the world and slash energy demand while OPEC+ ramps up
supply. Compared to a year earlier, crude oil prices dipped by 8.3 percent, mainly due to weak demand
from China.

Gold prices, on the other hand, increased by 7.0 percent to US$2,897.26 per fine ounce in February
from US$2,708.37 per fine ounce in the previous month, on the back of safe-haven demand amid
uncertainty over U.S. tariff plans that could potentially boost inflation. Compared to a year earlier, gold
prices increased by 43.0 percent from US$1,858.94 in February 2024.

2.1.1 Commodity Price Index
The weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude
oil) decreased by 1.14 percent to 224.86 in February 2025. The decrease was on the back of decreases
in the cocoa and crude oil sub-indices. The crude oil sub-index fell by 10.7 percent, the cocoa sub-
index fell by 4.3 percent, and the gold sub-index increased by 7.0 percent.
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2.2 Trade Balance
The trade account recorded a surplus of US$1.64 billion in the first two months of the year, higher than
the surplus of US$386.93 million recorded in the corresponding period of last year. Export earnings
increased by 49.9 percent to US$4.31 billion, driven mainly by gold and cocoa exports. The value of
gold exports rose by 63.2 percent to US$2.31 billion, on account of increases in both the volume and
price of gold. The volume of gold exports increased by 15.2 percent to 857,958.96 million fine ounces,
underpinned by increased output from both the small- and large-scale gold mines. The average realized
price for gold also increased by 41.6 percent to US$2,692.31 per fine ounce. Cocoa exports, of both
beans and products, increased to US$835.49 million, supported by both volumes and prices. The value
of crude oil exports, however, decreased by 6.4 percent to US$581.38 million, influenced by both
volume and price effects.

Other exports, including non-traditional exports, improved by 20.2 percent to US$523.64 million, from
US$435.60 million during the same review period last year.

The total import bill rose by 7.3 percent to US$2.67 billion in 2025, from US$2.49 billion in the
corresponding period of 2024, mainly due to a pick-up in oil and gas imports by 42.5 percent to
US$919.34 million. Non-oil imports, however, decreased by 5.0 percent to US$1.75 billion.

2.3 Current Account
The current account recorded a surplus of US$3.55 billion in 2024, representing a sharp increase of
152.0 percent over the surplus of US$1.41 billion recorded in 2023. The higher current account surplus
came on the back of the improved trade surplus and higher remittance inflows. Net remittance flows for
13,000.00
Figure 2.1: International Cocoa Prices (US$/metric tonnes)

Figure 2.1: International Cocoa Prices (US$/metric tonnes)
Figure 2.2: International Brent Crude Oil Prices (US$ per
barrel)

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

Figure 2.3: International Gold Prices (US$ per ounce)
Figure 2.3: International Gold (US$/ounce)

Figure 2.4: Commodity Price Index


Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
J

Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
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the review period increased by 34.1 percent to US$5.42 billion in 2024, from US$4.04 billion in 2023.
Net investment income payment and payment for services, however, increased by 44.0 percent and 14.9
percent, respectively, to US$3.0 billion and US$3.85 billion in the same reference period.

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

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

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

2.5 International Reserves
The stock of Gross International Reserves increased to US$9.39 billion at the end of February 2025
(equivalent to 4.2 months of imports) from the stock position of US$8.98 billion at the end of December
2024 (4.0 months of imports). Net International Reserves also recorded a buildup of US$335.46 million
from a stock position of US$3.19 billion at end-December 2024.

2.6 External Sector Outlook
The cocoa market is expected to return to a surplus in the current season, with overall supply outpacing
demand. At the same time, demand is expected to decline due to high input costs and concerns about
global recession from the tariff war. As a result, cocoa prices are projected to decline after reaching a
record high in late 2024. In the outlook, there is downward pressure on crude oil prices due to low
demand from China, and OPEC+ plans to ramp up production. Gold prices are projected to remain
supported due to its safe-haven appeal in an environment of uncertainty and geopolitical tension.
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Table 2.1: Trade Balance (US$ million)
Table 1

Jan - Feb

Jan - Feb

Jan - Feb
Abs Y/Y
Chg
Rel Y/Y
Chg
Trade Balance

Trade Bal (% GDP)
1.1
0.5
1.9
Total Exports

Gold ( $'M)

Volume (fine ounces)

Unit Price ($/fine ounce)

Cocoa Beans ( $'M)

Volume (tonnes)

Unit Price ($/tonne)

Cocoa Products ( $'M)

Volume (tonnes)

Unit Price ($/tonne)

Crude Oil ( $'M)

Volume (barrels)

Unit Price ($/bbl)

Other Exports

o/w: Non-Tradional Exports

Total Import

Non-Oil

Oil and Gas

of which: Products

Gas ( $'M)

Crude Oil ( $'M)

Volume (barrels)

Unit Price ($/bbl)

Gas ( $'M)

Volume (MMBtu)

Unit Price ($ mmBtu)

Source: Bank of Ghana
PUBLIC

3. Real Sector Developments

3.0 Highlights
Growth continued to rebound, exceeding initial expectations. Provisional data from the Ghana
Statistical Service estimated real GDP growth at 5.7 percent in 2024, higher than the programmed
growth rate of 4.0 percent for 2024, and the 3.1 percent recorded in 2023. The Bank’s CIEA rebounded,
and both business and consumer confidence have improved. These developments suggest a positive
outlook for the economy.

3.1 Economic Growth
Economic growth continued to rebound, exceeding initial expectations. Provisional data from the Ghana
Statistical Service estimated real GDP growth at 5.7 percent in 2024, higher than the programmed
growth rate of 4.0 percent for 2024, and the 3.1 percent recorded in 2023. Non-oil GDP grew by 6.0
percent, compared with 3.6 percent recorded in 2023. The growth outturn in 2024 was driven by
activities in the industry and services sectors. However, growth in the agricultural sector was slower,
driven mainly by lower crop yields due to adverse weather conditions.

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

3.2 Trends in Real Sector Indicators

Consumer Spending
Consumer spending, proxied by domestic VAT collections and retail sales, increased in January 2025,
compared with the corresponding period in 2024. Domestic VAT collections increased by 35.6 percent
on a year-on-year basis to GH¢1,680.59 million. On a month-on-month basis, domestic VAT improved
by 2.8 percent in January 2025, from GH¢1,634.46 million in the preceding month.

Retail sales increased by 27.9 percent (year-on-year) to GH¢238.38 million in January 2025, from
GH¢186.42 million recorded in the same period in 2024. Compared to December 2024, however, retail
sales declined by 45.9 percent.
PUBLIC

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), recorded a positive performance in January 2025.

Total direct taxes collected increased by 60.1 percent to GH¢5,322.11 million in January 2025,
compared with GH¢3,325.09 million recorded in January 2024. Conversely, on a month-on-month
basis, total direct taxes collected for January 2025 declined by 60.8 percent from GH¢13,565.34 million
collected in December 2024. In terms of contributions of the various sub-tax categories, corporate tax
accounted for 61.8 percent, income tax (PAYE and self-employed) accounted for 31.4 percent, while
“other tax sources” contributed 6.8 percent.

Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) went up by 38.5
percent in year-on-year terms to GH¢472.62 million in January 2025, from GH¢341.12 million
collected during the corresponding period in 2024.

Construction Sector Activities
Activity in the construction sub-sector, proxied by the volume of cement sales, declined by 4.7 percent
(year-on-year) in January 2025 to 223,936.19 tonnes, compared with 235,084.56 tonnes recorded a year
ago. However, on a month-on-month basis, total cement sales improved by 8.0 percent in January 2025,
compared with the 207,326.95 tonnes recorded in December 2024. The year-on-year decline in total
cement sales was due to a slowdown in construction activities during the review period.

Vehicle Registration
Transport sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing
Authority (DVLA), increased by 36.1 percent to 29,521 in January 2025, from 21,692 vehicles
registered during the corresponding period of 2024. On a month-on-month basis, DVLA vehicle
registrations improved significantly from 5,721 vehicles recorded in the preceding month.

Industrial Consumption of Electricity
Industrial consumption of electricity moderated by 2.1 percent in January 2025 to 287.8 gigawatts, as
against 293.9 gigawatts recorded for the corresponding period of 2024. On a month-on-month basis,
electricity consumed by industries in January 2025 increased by 7.8 percent from 267.0 gigawatts
utilised for December 2024.

Passenger Arrivals
Passenger arrivals declined by 4.8 percent on year-on-year terms to 101,237 in January 2025, from
106,324 arrivals recorded a year ago. Compared to a month earlier, passenger arrivals recorded at the
international airport and the land borders also went down by 20.2 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 14.5 percent, year-on-year, to 65,594 in January 2025, from 57,310
recorded during the same period in 2024. On a month-on-month basis, total container traffic dipped by
2.6 percent in January 2025.
PUBLIC

3.3 Labour Market Activity

Private Sector Pension Contributors
Total number of private sector SSNIT contributors, which partially gauges employment conditions,
improved by 3.9 percent to 1,049,172 in January 2025, compared with 1,009,639 for the same period
in 2024. On a month-on-month basis, total number of private sector SSNIT contributors remained
largely unchanged from the 1,052,393 individuals recorded in December 2024.

Advertised Jobs
The number of jobs advertised in selected print and online media, which partially gauges labour demand
in the economy, increased in February 2025 relative to what was observed in the corresponding period
a year ago. In total, 3,411 job adverts were recorded, as compared with 2,754 for the same period in
2024, indicating an improvement of 23.9 percent (year-on-year). On a month-on-month basis, the
number of job vacancies in February 2025 went up by 11.7 percent from the 3,054 jobs advertised in
January 2025. Cumulatively, 6,465 advertised jobs were recorded for the first two months of 2025,
compared with 5,577 jobs advertised during the same period in 2024.

3.4 Composite Index of Economic Activity
The Bank’s updated real Composite Index of Economic Activity (CIEA) recorded an annual growth of
5.7 percent in January 2025, compared to a growth of 3.5 percent for the corresponding period of 2024.
Higher consumption, international trade activities, and private sector credit growth contributed to the
improvement in economic activity during the period.

3.5 Consumer and Business Surveys
The latest confidence surveys conducted in February 2025 showed significant improvement in both
consumer and business sentiments. The Consumer Confidence Index improved to 100.2 in February
2025 from 90.2 in December 2024, largely on account of easing inflationary pressures and optimism
about future economic conditions. Similarly, the Business Confidence Index increased to 99.7 from
96.6 in the same comparative period as firms met their short-term targets and expressed positive
industry prospects, buoyed by expectations for an improved macroeconomic environment. Results from
the confidence surveys were broadly aligned with the observed trend in Ghana’s Purchasing Managers’
Index (PMI), which also signaled an improvement in business conditions. The PMI rose above the 50.0
benchmark to 50.5 in February 2025, from 47.9 in January 2025.
PUBLIC

Domestic VAT


Retail Sales, Left


Cement Sales

Thousands

Number of Private Sector Contributors to SSNIT

Figure 3.2: High Frequency Economic Indicators


Jan-23
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
PUBLIC

Imports and Exports

Industrial Consumption of Electricity

Percent, y-o-y
Real CIEA


Percent, y-o-y12

-4
-8
Cement Sales (Tons)
SSNIT Contr by Pte Sector
Industrial Cons of Electricity
Imports
Dom VAT
Port Activity
Exports
DMB's Credit to Pte Sector
Tourist Arrivals
Real CIEA growth (%)

Panel 2:
Ghana's Leading Indicators of Economic Activity

...Exports and Imports increased in January 2025 compared to December
2024...
...Industrial activity, proxied by industrial consumption of electricity,
increased...


...Commercial banks' credit to the private sector dipped in January 2025
relative to the pevious month...
...Demand for labour, proxied by the number of job adverts (in print and
online media), increased in February 2025...


...On a year-on-year basis, the real CIEA grew by 5.7 percent in January 2025,
compared with a growth of 3.5 percent in January 2024...
...The growth in the real CIEA was mainly driven by a pick-up in Exports, SSNIT
Contributions from the Private Sector, Port Activity, DMB’s Credit to the Private
Sector, Domestic VAT and Imports...


Source: Bank of Ghana, Various Stakeholders
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Feb-25
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
PUBLIC

Domestic taxes, Direct


Consumer Confidence Index

Business Confidence Index

99.7 100

Annual real GDP growth rate, y/y


Percent


Annual sectoral real GDP growth rate, y/y


Percent


Panel 3:
Ghana's Leading Indicators of Economic Activity

...Domestic tax collection decreased in January 2025 compared to
December 2024...
...Vehicle registration increased significantly in January 2025 compared to the
month before...


...Consumer Confidence improved largely on account of easing inflationary
pressures and optimism about future economic conditions...
...Business Confidence improved as firms met their short-term targets and
expressed positive industry prospects, buoyed by expectations for an improved
macroeconomic environment...


...Real Oil and Non-Oil GDP grew by 5.7 percent and 6.0 percent respectively
in 2024, compared with growth rates of 3.1 percent and 3.6 percent
respectively in 2023...
...The Industry and Services sectors drove growth in 2024, recording growth rates of
7.1 percent and 5.9 percent respectively, relative to a contraction of 1.7 percent and
a growth rate of 5.7 percent in 2023 respectively...


Source: Bank of Ghana, Various Stakeholders
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Feb-25
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25

Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Feb-25

Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25

PUBLIC

4. Monetary and Financial Developments


4.0 Highlights
Developments in monetary aggregates for February 2025 showed increased growth in broad money
supply (M2+) relative to the corresponding period of 2024, largely driven by significant expansion in
the Net Foreign Assets (NFA). Financial intermediation activities of banks continued to show signs of
recovery in February 2025, supported by the pick-up in real sector activities. This reflected in growth
in real private sector credit relative to a contraction recorded in February 2024. Money market rates
broadly trended downwards at the short end of the primary market. The GSE Composite Index (GSE-
CI) recorded significant gains in February 2025 relative to the corresponding period last year,
underpinned by improved investor appetite, and improved liquidity in that segment of the market.

4.1 Developments in Monetary Aggregates

Money Supply
Developments in monetary aggregates for February 2025 showed increased growth in broad money
supply (M2+) relative to the corresponding period of 2024, driven largely by a significant acceleration
in the pace of growth in Net Foreign Assets (NFA) of depository corporations. Annual growth in M2+
increased to 33.1 percent in February 2025, relative to 25.5 percent in the corresponding period of 2024.
The contribution of NFA increased to 27.3 percent from 19.3 percent, while that of NDA decreased
marginally to 5.8 percent from 6.2 percent over the same comparative period.

Figure 4.1a: M2+ Growth and its Sources (%
Contributions)
Net Foreign Assets
NDA
Total Liquidity (M2+)
Figure 4.1b: Banking Sector NDA and its Sources; per cent
contributions
NCG
Claims on Priv. Sect. (Incl. PE's)
BOG OMO Steril. Acc.
OIN
NDA


Sources: Bank of Ghana
PUBLIC

Figure 4.2: M2+ and its Components (% Contributions)
Source: Bank of Ghana

Net dometic assets expanded by 6.5 percent, year-on-year, in February 2025 relative to 5.9 percent in
February 2024, while the Net foreign assets expanded by 245.1 percent relative to 360.7 percent over
the same comparative period. Analysis of the components of M2+ showed that the increase in the
growth in M2+ reflected in increased growth in currency outside banks and foreign currency deposits.
Growth in demand deposits, and savings and time deposits, however, decreased.

4.2 Reserve Money
Reserve money (RM) expanded significantly in 2025, supported by considerable growth in the Net
Foreign Assets (NFA) of the Central Bank, mainly on account of inflows from the Gold for Reserves
(G4R) Programme, forex purchases, and proceeds from the IMF Extended Credit Facility (ECF). The
dynamic Cash Reserve Requirement (CRR) continued to induce banks to increase their reserves with
the Bank of Ghana to shore up regulatory reserves. Annual growth in RM increased considerably to
68.8 percent in February 2025, from a growth of 25.3 percent recorded in the corresponding period of
2024.

The NDA of the Bank of Ghana recorded a moderate growth due to a contraction in Claims on Deposit
Money Banks (DMBs), partly reflecting a build-up in foreign currency deposits. The contribution of
NDA to the growth in RM increased to 10.8 percent in February 2025, compared to negative 21.2
percent recorded in February 2024. Similarly, the contribution of NFA to the growth in RM increased
to 58.1 percent relative to a growth of 46.5 percent over the same comparative period.
PUBLIC

Source: Bank of Ghana

4.3 Deposit Money Banks Credit Developments
DMBs’ credit to the private sector and public institutions increased by GH¢18,881.31 million (25.60%)
in February 2025, compared to an increase of GH¢1,287.69 million (1.75%) recorded in February 2024.
The increase in credit flows was largely due to the expansion of credit to the private sector. Credit to
the private sector increased by GH¢18,523.73 million (27.32%) in February 2025, compared to an
increase of GH¢3,312.48 million (5.06%) recorded in the corresponding period of 2024. The increased
flow of credit to the private sector was on the back of an increase in domestic currency credit,
underpinned by a pickup in real sector activities.

Private sector credit accounted for 98.11 percent of the flow in total outstanding credit in February
2025, relative to 257.24 percent recorded in the corresponding period of 2024. The top five sectors with
significant shares of credit flows were: services (28.64%); commerce and finance (28.35%); import
trade (14.41%); manufacturing (10.18%); and construction (5.89%).

Outstanding credit to the private sector at the end of February 2025 was GH¢87,333.63 million,
compared with GH¢68,809.90 million recorded in February 2024. In real terms, credit to the private
sector increased by 3.06 percent relative to a 14.70 percent contraction recorded over the same
comparative period. Growth in real private sector credit declined slightly below its trend during the
review month.
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
OIN
PUBLIC

Source: Bank of Ghana

4.4 Money Market Developments
Interest rates continued to trend downwards at the short end of the primary market. Rates on the longer-
dated instruments, however, remained stable. The 91-day and 182-day Treasury bill rates decreased to
26.93 percent and 27.69 percent, respectively, in February 2025, from 27.87 percent and 30.34 percent
in the corresponding period of 2024. Similarly, the rate on the 364-day instrument declined to 28.90
percent in February 2025 from 30.90 percent in February 2024. Rates on the 2-year, 3-year, 5-year, 6-
year, 7-year, 10-year, and 15-year bonds remained broadly stable at 21.50 percent, 29.85 percent, 22.30
percent, 21.75 percent, 18.10 percent, 19.75 percent, and 19.75 percent due to the non-issuance of these
instruments during the review period; the rate on the 20-year bond, however, increased marginally to
20.20 percent from 19.75 percent over the same comparative period.

The Interbank Weighted Average Rate (IWAR) decreased to 27.04 percent in February 2025 from 29.19
percent in February 2024. Similarly, the average lending rates of banks declined marginally to 30.12
percent in February 2025 from 32.77 percent recorded in the corresponding period of 2024.


Source: Bank of Ghana
Figure 4.4a: Sectoral Shares in Credit to the Private
sector (%)
Feb-24
Feb-25

RGPSC
Trend

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

Figure 4.6: Yield Curve (YOY, %)

Feb-24
Feb-25

Figure 4.5: MPR, Interbank and T-bill Rates and Inflation
(%)
MPR
91-Day T-bill rate
Inter-Bank rate
Inflation
Feb-22
May-22
Aug-22
Nov-22
Feb-23
May-23
Aug-23
Nov-23
Feb-24
May-24
Aug-24
Nov-24
Feb-25
per cent
PUBLIC

Figure 4.7b: GSE Financial Stocks Index
Source: Bank of Ghana

Figure 4.7a: GSE Composite Index
4.5 Stock Market Developments
The Ghana Stock Exchange Composite Index (GSE-CI) increased to 5,659.8 points in February 2025
from 3,227.9 points recorded in the corresponding period of 2024. This translates into a year-on-year
gain of 75.3 percent in February 2025, compared to a growth of 34.1 percent in February 2024. The
robust performance of the GSE-CI was largely due to the improved investor appetite, driven by
significant recovery in the profitability of listed financial institutions. The main sectors that contributed
to the gains recorded by the GSE-CI were the food and beverages, manufacturing, distribution, finance,
and ETFund sectors. The GSE-Financial Stocks Index (GSE-FI) closed at 2,814.3 points, reflecting a
year-on-year gain of 41.1 percent, compared to a gain of 2.4 percent over the same comparative period
in 2024. Total market capitalisation at the end of February 2025 was GH¢127.82 billion, representing
a year-on-year growth of 70.27 percent (GH¢52.75 billion), compared with a growth of 16.87 percent
(GH¢10.83 billion) in February 2024.


Source: Bank of Ghana


4.6 Conclusion
Developments in monetary aggregates for February 2025 showed increased growth in broad money
supply (M2+) relative to the corresponding period of 2024, largely driven by significant expansion in
the Net Foreign Assets (NFA), reinforced by a moderate increase in the Net Domestic Assets (NDA)
of depository corporations. Reserve money expanded significantly in 2025, supported by considerable
growth in the Net Foreign Assets (NFA) of Bank of Ghana. Money market rates broadly trended
downwards at the short end of the primary market on a year-on-year basis. The Interbank Weighted
Average Rate (IWAR) declined. Similarly, the average lending rates of banks decreased marginally,
reflecting the pass-through effect of declines in the rates on the wholesale funds market. The GSE
Composite Index (GSE-CI) recorded an increased year-on-year gain in February 2025 relative to the
corresponding period last year.
PUBLIC

5. Banking Sector Developments

5.0 Highlights
The banking sector posted a strong performance during the first two months of 2025. The industry’s
balance sheet was robust, with the significant growth in assets in February funded principally by strong
uptick in deposits and other funding sources. The Financial Soundness Indicators (FSIs) remained
healthy, with relatively improved solvency, liquidity, efficiency and asset quality indicators. Banks,
however, reported a decline in profitability indicators on the back of the slowdown in profit-before-tax
(PBT) and stronger growth in shareholders’ funds. The industry’s Non-Performing Loans (NPLs)
improved in February 2025 on account of a higher growth in loans and advances relative to the growth
in the NPL stock.

5.1 Banks’ Balance Sheet
Total assets of the banking industry grew by 34.0 percent (year-on-year) to GH¢384.7 billion at end-
February 2025, higher than the 21.0 percent growth recorded in the same period of 2024. Domestic
assets grew by 29.3 percent in February 2025, up from 20.3 percent in February 2024, while foreign
assets picked up by 83.2 percent in February 2025, from a growth of 29.5 percent during the same
period a year ago. Consequently, the share of foreign assets in total assets improved to 12.0 percent in
February 2025 from 8.8 percent during the same period in 2024, while that of domestic assets declined
to 88.0 percent from 91.2 percent during the reference period.

Investments (comprising bills, securities, and equity) remained the largest component of total assets at
end-February 2025, although growth declined to 8.6 percent in February 2025 from 32.4 percent
recorded during the same period last year. The share of investments in total assets decreased to 31.8
percent in February 2025 from 39.3 percent in the same period of 2024.

The industry’s gross loans and advances grew by 25.2 percent to GH¢93.7 billion, up from a growth of
1.8 percent recorded during the same period in 2024. Net loans and advances (gross loans adjusted for
provisions and interest in suspense) grew by 25.3 percent in February 2025, up from a contraction of
2.7 percent during the same period last year. The foreign currency component of net advances also grew
by 7.9 percent in February 2025, from a contraction of 5.9 percent in the same period of 2024. Banks’
new lending picked up substantially by 80.0 percent to GH¢14.4 billion during the first two months of
2025.

Growth in the industry’s deposits was moderate, recording a year-on-year growth of 27.9 percent to
GH¢286.9 billion as at end-February 2025. Total borrowings by banks (foreign and domestic) grew
significantly by 96.0 percent to GH¢28.3 billion in February 2025. The growth in borrowings was
largely from domestic sources, which had a growth of 34.5 percent in February 2025 relative to 22.0
percent recorded during the same period a year ago. Foreign borrowings grew by 3.5 percent, compared
to a contraction of 31.1 percent recorded during the same period last year.

The industry shareholders’ funds (comprising paid-up capital and reserves) grew steadily following
increased profits and recapitalization efforts by banks. Total shareholders’ funds grew by 40.0 percent
to GH¢42.2 billion in February 2025, relative to 34.6 percent growth recorded in February 2024.
PUBLIC

Table 5.1: Key Developments in DMBs' Balance Sheet
Feb-24
(GH ¢'million)
Dec-24
Feb-25
Y-on-Y Growth (%)
Feb-24
Dec-24
Feb-25
Shares (%)
Feb-24
Feb-25
TOTAL ASSETS

A. Foreign Assets

B. Domestic Assets

Investments

i. Bills

ii. Securities

Advances (Net)

of which Foreign Currency

Gross Advances

Other Assets

Fixed Assets

TOTAL LIABILITIES AND CAPITA

Total Deposits

of which Foreign Currency

Total Borrowings

Foreign Liabilities

i. Short-term borrowings

ii. Long-term borrowings

iii. Deposits of non-residents

Domestic Liabilities

i. Short-term borrowing

ii. Long-term Borrowings

iii. Domestic Deposits

Other Liabilities

Paid-up capital

Shareholders' Funds

Source: Bank of Ghana


5.1.1 Asset and Liability Structure
The banking industry’s asset and liability structure was dominated by less risky assets during the review
period. “Cash and due from banks” overtook investments as the major contributor to assets, with a share
of 38.9 percent in February 2025, up from 30.2 percent in February 2024. The share of investments was
31.8 percent in February 2025, compared to 39.3 percent recorded in February 2024. Loans and
advances (net) decreased marginally to 20.1 percent in February 2025, from 21.4 percent in February
2024, due to the increase in “cash and due from banks”. The share of bank’s non-earning assets (fixed
assets and other assets) remained fairly stable at 9.2 percent in February 2025, compared to 9.1 percent
in February 2024.

On the liability side, deposits remained the primary source of funding for banks although its share
declined marginally. The share of deposits in the banks’ pool of funds was 74.6 percent in February
2025, compared to 78.2 percent in February 2024. The share of borrowings, on the other hand, picked
up to 7.4 percent in February 2025, compared to 5.0 percent recorded in February 2024. The proportion
of shareholders’ funds in banks’ liabilities and capital grew marginally to 11.0 percent in February
2025, from 10.5 percent during the reference period in 2024. The share of “other liabilities” also grew
from 6.3 percent in February 2024 to 7.1 percent in February 2025.
PUBLIC

Asset Structure of Banks (%)

Feb-23
Feb-24
Dec-24
Feb-25
Cash and Due from Banks
Investments
Net Advances
Others
Liability Structure of Banks (%)

Feb-23
Feb-24
Total Deposits
Total Borrowings
Dec-24
Feb-25
Shareholders' Funds
Other Liabilities
Components of Banks' Investments (%


Feb-23
Feb-24
Bills
Securities
Dec-24
Shares & Other Equities
Feb-25
Distribution of Credit by Sector (%)
Miscellaneous
Services

Transp., Stor. & Commu.
6.3
7.8
Commerce and Finance
Elect., Water & Gas
21.7 25.9
4.0
3.9
Construction
8.6
9.4
Manufacturing
Mining & Quarrying

Agric, Forest. & Fishing

Feb-25 Feb-24
30.0
40.0
NPL ratio in each Sector (%)
Miscellaneous
Services
Transp., Stor. & Commu.
Commerce and Finance
Elect., Water & Gas
Construction
Manufacturing
Mining & Quarrying
Agric, Forest. & Fishing


14.6
15.4
31.7 6.9

13. 18.5

11.0.4

51.6
67.0
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0
Feb-25 Feb-24
Components of Banks' Credit Portfolio (%)


20.0
-
Private sector
Public sector


Figure 5.1: Developments in Banks’ Balance Sheet & Asset Quality
Source: Bank of Ghana

5.1.2 Share of Banks’ Investments
Securities (long-term debt instruments) remained the largest component of banks’ investment in
February 2025 with a share of 55.1 percent, up from its share of 52.2 percent in February 2024 following
the rebalancing of banks portfolios. The share of short-term bills in total investments subsequently
declined to 44.5 percent in February 2025, from 47.6 percent in February 2024. The share of equity
investments was 0.3 percent in February 2025.
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5.2 Credit Risk
Credit risk remained elevated during the period under review, reflecting the increase in the stock of
non-performing loans.

5.2.1 Credit Portfolio Analysis
Gross loans and advances totalled GH¢93.7 billion at end-February 2025, representing an annual
growth of 25.2 percent, relative to 1.8 percent growth in February 2024. Private sector credit recorded
a stronger growth of 26.9 percent to GH¢87.3 billion in February 2025, as against a growth of 5.1
percent during the corresponding period in 2024. Public sector credit also grew by 6.0 percent to
GH¢6.3 billion in February 2025, compared to a contraction of 25.3 percent registered during the same
period in 2024. The bulk of the industry’s credit continues to be allocated to the private sector,
accounting for 93.2 percent of the industry’s total credit as of February 2025, up from 92.0 percent
share recorded in February 2024. Accordingly, the public sector recorded a contraction in its credit
allocation share to 6.8 percent in February 2025, from 8.0 percent in February 2024.

The pick-up in the growth of credit to the private sector went to indigenous private enterprises and
households, which grew by 24.3 percent and 23.5 percent, respectively, in February 2025. Credit to
foreign private enterprises also grew by 45.5 percent in February 2025, from a contraction of 14.6
percent in the corresponding period last year.

In terms of the sectoral distribution of credit, the services sector accounted for 32.6 percent at end-
February 2025, compared to 33.9 percent in February 2024. This was followed by the commerce and
finance sector with 25.9 percent and manufacturing with 11.0 percent. These top three sectors together
accounted for 69.5 percent of total credit at end-February 2025. The mining and quarrying sector
remained the lowest beneficiary of industry credit, with its share declining marginally to 2.9 percent at
end-February 2025 from 3.0 percent in February 2024.

5.2.2 Off-Balance Sheet Transactions
Off-balance sheet transactions (largely trade finance and guarantees) grew during the review period.
Contingent liabilities of GH¢23.4 billion as at end-February 2025 rose by 0.3 percent from GH¢23.3
billion as at end-February 2024. However, banks’ contingent liabilities as a percentage of total liabilities
declined to 6.8 percent in February 2025, from 9.1 percent during the same period in 2024.

5.2.3 Asset Quality
The industry’s NPL ratio improved to 22.6 percent in February 2025, from 24.6 percent in February
2024, on account of a lower growth in the NPL stock relative to gross loans during the review period.
Similarly, the NPL ratio adjusted for the fully provisioned loan loss category declined from 9.8 percent
in February 2024 to 8.9 percent in February 2025. The NPL stock grew by 14.9 percent to GH¢21.1
billion in February 2025 from GH¢18.4 billion in February 2024. The private sector accounted for the
largest share of non-performing loans at 96.2 percent in February 2025, higher than the share of 94.5
percent recorded in February 2024. The share of public sector NPLs rose to 3.8 percent in February
2025, from 5.5 percent a year ago.
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Solvency (%)


13.6


12.1


30.0


20.0

Feb-24 Apr-24 Jun-24 Aug-24 Oct-24
RWA/Total Assets
CAR (with Reliefs)
Dec-24 Feb-25

90.0
80.0
70.0


30.0
20.0
10.0

Efficiency Indicators (%)
10.8
12.0


7.2
6.0
4.0


1.1

Feb-23


Feb-24
Dec-24
Feb-25


Asset Quality


21.8


9.8


6.3


Feb-22
Feb-23
Feb-24
Dec-24
Feb-25
SUB-STD (GH¢m)
DOUBTFUL (GH¢m)


Profitability (%)


4.7


Feb-23
Feb-24
Dec-24
Feb-25


5.0
5.2


24.6
The decline in the industry NPL ratio reflected improvement in NPL ratios for six economic sectors
while only three reported a deterioration during the review period. The manufacturing and
transportation, storage and communication sectors recorded higher loan impairments of 18.5 percent
and 50.3 percent, respectively, in February 2025, from 13.9 percent and 48.0 percent in February
2024. The NPL ratios of the construction, commerce and finance, services, electricity, water and gas
and mining and quarrying sectors declined to 31.7 percent, 21.2 percent, 17.4 percent, 14.6 percent and
11.0 percent in February 2025 from their respective positions of 36.9 percent, 25.4 percent, 19.5 percent,
15.4 percent and 13.4 percent in February 2024. The mining and quarrying sector accounted for the
lowest NPL ratio at 11.0 percent while the agriculture, forestry and fishing sector recorded the highest
NPL ratio at 51.6 during the review period.

5.3 Financial Soundness Indicators
The key Financial Soundness Indicators (FSIs) as of February 2025 pointed to a solvent, liquid, and
efficient sector with a relatively improved asset quality. Profitability indicators, however, moderated
during the review period.

Figure 5.2: Key Financial Soundness Indicators
Source: Bank of Ghana


5.3.1 Liquidity Indicators
The industry’s liquidity position remained strong following increases in both core and broad liquidity
measures during the review period. The ratio of core liquid assets (mainly cash and due from banks) to
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total deposits increased to 52.1 percent in February 2025, from 38.6 percent in February 2024. Also,
the ratio of core liquid assets to total assets increased to 38.9 percent in February 2025 from 30.2 percent
over the same comparative period. Despite the moderation in the growth of banks’ holdings in short-
term investments, the ratio of broad liquid assets to total deposits increased from 88.8 percent in
February 2024 to 94.6 percent in February 2025, while the ratio of broad liquid assets to total assets
increased from 69.4 percent in February 2024 to 70.6 percent in February 2025.

5.3.2 Capital Adequacy Ratio
The industry’s solvency position, as measured by the Capital Adequacy Ratio (CAR), was 12.1 percent
in February 2025 (compared to 8.7 percent a year ago), higher than the revised prudential minimum of
10 percent. The improvement in the solvency of the sector was on the back of rebound in profitability
across the banking sector and the recapitalisation efforts by undercapitalised banks. As part of reliefs to
minimise the impact of the Domestic Debt Exchange Programme (DDEP), banks were allowed to
spread derecognition losses on the restructured bonds till the end of 2025. When the DDEP regulatory
reliefs are considered, the CAR increased from 13.6 percent in February 2024 to 14.4 percent in
February 2025.

5.3.3 Profitability
The banking industry maintained its profitability during the first two months of 2025, recording higher
profit-before-tax (PBT) and profit-after-tax (PAT). Major income lines, except interest income,
recorded higher year-on-year growth. Net interest income moderated in growth to 11.0 percent in
February 2025, from 25.5 percent a year ago, on the back of the decline in lending rates and rates on
money market instruments during the review period.

Net fees and commissions income recorded a higher growth of 35.8 percent in February 2025 from 17.7
percent a year ago, whereas other income recorded a growth of 5.5 percent in February 2025 following
a contraction of 36.6 percent during the same period last year. The changes in the different income lines
culminated into an increase in the industry’s operating income to GH¢6.3 billion in February 2025,
from GH¢5.5 billion in February 2024, representing a growth of 13.9 percent. Similarly, gross income
increased to GH¢8.5 billion in February 2025 (15.0% year-on-year growth).

The industry recorded a higher growth in expenditure lines relative to income in February 2025. The
operating expenses of the banking industry grew by 24.7 percent in February 2025, in comparison to
14.3 percent in February 2024, reflecting the uptick in growth in staff- and non-staff-related expenses.
Provisions for depreciation, bad debt, and impairment losses on financial assets contracted by 55.5
percent in February 2025, relative to 28.0 percent contraction recorded in February 2024.

Consequently, the industry’s PBT grew by 20.7 percent to GH¢3.0 billion in February 2025, from
GH¢2.4 billion in February 2024. On the other hand, profit-after-tax (PAT) grew by 23.1 percent to
GH¢2.0 billion in February 2025.

(a) Return on Assets and Return on Equity
Despite the rebound in profits for the sector, the key profitability indicators, Return on Equity (ROE)
and Return on Assets (ROA), recorded a moderation during the period under review. Return on Assets
(ROA) fell to 4.7 percent in February 2025 from 5.2 percent in February 2024 while Return on Equity
(ROE) declined to 28.5 percent from 32.7 percent during the same reference period.
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(b) Interest Margin and Spread
Banks’ interest spread declined marginally to 2.0 percent in February 2025, from 2.1 percent in
February 2024, on the back of marginal decline in gross yield from 3.1 percent to 2.8 percent in February
2025. Interest payable declined marginally to 0.9 percent in February 2025. The interest margin to total
assets ratio fell slightly to 1.1 percent in February 2025 from 1.4 percent in February 2024, while the
ratio of interest margin to gross income also fell to 51.7 percent from 53.6 percent during the same
reference period. The ratio of gross income to total assets (asset utilisation) declined to 2.2 percent in
February 2025 from 2.6 percent in February 2024, while the profitability ratio grew by 23.3 percent in
February 2025 from 21.8 percent over the same period last year.

(c) Composition of Banks’ Income
Investment income remained the largest component of banks’ income, as its share rose marginally to
42.7 percent in February 2025 from 42.6 percent in February 2024. Interest income from loans
constituted the second largest source of banks’ income, bringing in a lower share of 35.7 percent in
February 2025 compared with 37.0 percent during the same comparative period in 2024. The share of
banks’ income from fees and commissions improved to 12.5 percent in February 2025 from 10.6 percent
in February 2024. The proportion of income from other sources, however, declined to 9.1 percent in
February 2025 from 9.9 percent during the same period in 2024.

Figure 5.3: Composition of Income, Cost and Borrowings


Banks' Borrowing by Source (% of Total)

Feb-22
Feb-23
Feb-24
Dec-24
Feb-25
Domestic Borrowing

Foreign Borrowing
Source: Bank of Ghana


5.3.4 Operational Efficiency
Banks remained generally cost efficient during the period under review. Cost-to-income ratio improved
from 78.2 percent in February 2024 to 76.7 percent in February 2025, while the cost-to-total assets ratio
also improved to 1.7 percent in February 2025 from 2.0 percent during the same period last year.
Similarly, the ratio of operational cost to total income declined from 52.3 percent in February 2024 to
50.0 percent in February 2025 and the operational cost-to-total assets ratio went down from 1.4 percent
February 2024 to 1.1 percent in February 2025.
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5.3.5 Banks’ Counterparty Relationships
Total offshore balances increased by 102.6 percent to GH¢42.1 billion in February 2025, compared to
a growth of 22.0 percent a year earlier. Nostro balances grew by 89.9 percent in February 2025,
compared with a contraction of 20.8 percent in February 2024, while industry placements with foreign
counterparties recorded a moderation of 113.6 percent in February 2025 from 120.3 percent recorded
during the same period in the prior year. Following these developments, the ratio of offshore balances
to net worth rose to 99.8 percent in February 2025 from 69.0 percent during the same period in 2024.

The share of banks’ external borrowings in total borrowings declined to 18.7 percent in February 2025
from 41.7 percent in February 2024, while that of domestic borrowing increased to 81.3 percent in
February 2025 from 58.3 percent during the same period in 2024. Banks’ external borrowings were
largely long-term in nature, with the share of long-term borrowings in total external borrowing
moderating to 51.8 percent in February 2025 from 62.7 percent in February 2024, while that of short-
term borrowings rose to 48.2 percent in February 2025 from 37.3 percent during the same period in
2024.

5.4 Credit Conditions Survey
Results from the February 2025 Credit Conditions Survey pointed to a net easing in overall credit stance
on loans to both enterprises and households. This was reflected in all components of enterprise loans.
Banks have projected further easing in the overall stance on loans to enterprises over the next two
months, to be driven by net easing in the stance on all the categories of enterprise loans.

Similarly, the overall credit stance on household loans recorded a net easing during the survey period,
driven by net easing in the credit stance for both categories of household loans. Over the next two
months, banks project a further easing in the overall stance on loans to households, which will be
reflected in both loans for house purchase and consumer credit.

On the demand side, demand for loans by enterprises and households recorded a net decline during the
current survey period due to declines in all sub-components of both classes of loans. Banks project
overall demand for loans by enterprises to recover over the next two months, driven by net increases in
the demand for all sub-categories of both enterprise and household loans.
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Figure 5.4: Credit Conditions Survey Results


Source: Bank of Ghana


5.5 Conclusion and Outlook
The banking sector rebounded in performance with improvements in solvency, liquidity, asset quality
and efficiency. The sector’s performance, however, continues to be moderated by the lingering effects
of macroeconomic challenges and the DDEP. The sustained increases in profits are projected to boost
the capital levels of banks and support recapitalisation efforts. Asset quality, although moderating,
remains elevated and poses a key risk in the outlook, and will have to be monitored closely to minimise
its impact on the sector.


NPR (%)
NPR (%)
NPR (%)
NPR (%)
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6. Fiscal Developments

6.0 Highlights
The fiscal policy stance was more expansionary than expected in 2024. The 2024 fiscal deficit, on
commitment basis, was 7.9 percent of GDP, against a target of 3.8 percent of GDP, on the back of
higher expenditures than targeted. This notwithstanding, early indications from banking sector data
suggest some improvements in fiscal performance in early 2025. This, along with the commitment to
fiscal consolidation presented in the 2025 budget, should support the fiscal outlook. Also, the ratio of
public debt declined, supported by the debt restructuring

6.1 Total Revenue
Total revenue & grants for year end 2024 was GH¢186.59 billion (15.9% of GDP), higher than the
target of GH¢177.10 billion (15.1% of GDP). Domestic revenue totalled GH¢184.88 billion (15.7% of
GDP), above the target of GH¢173.99 billion (17.1% of GDP).

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¢151.16 billion (12.9% of GDP),
higher than the target of GH¢143.18 billion (14.0% of GDP). This represented a positive deviation of
5.6 percent over the target.

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¢78.74 billion (6.7% of
GDP). This outturn was 17.1 percent above the target of GH¢67.24 billion (6.6% of GDP). All the
subclasses under this tax handle exceeded their individual targets. Consequently, this was higher than
GH¢56,519.9 million collected in the corresponding period of 2023, reflecting a year-on-year growth
of 57.8 percent.

Taxes on Domestic Goods and Services consisting of Domestic VAT, Excise Duty, GET Fund Levy,
National Health Insurance Levy (NHIL) and Communication Service Tax (CST) for the review period
summed up to GH¢60.50 billion (5.1% of GDP), falling below the target. On year-on-year basis, the
outturn represented a growth of 47.4 percent over the outturn of 2023.

Non-tax revenue totalled GH¢27.73 billion, exceeding the target of GH¢23.37 billion by 18.7 percent.
Compared with the outturn for 2023, this translates into a year-on-year growth of 69.3 percent. This
performance was mainly due to higher-than-budgeted lodgements, resulting mainly from improved
collection efforts by some MDAs.

Collections from taxes on international trade, comprising mainly import duties, was GH¢19.92 billion,
higher than the target of GH¢18.91 billion by 5.3 percent. This tax type also recorded a year-on-year
growth of 60.8 percent.

“Other revenue” of GH¢4.93 billion failed to meet its target of GH¢6.53 billion by 24.5 percent.
However, this outturn was 17.3 percent above GH¢4.05 billion collected in the corresponding period of
2023.

Grants received for 2024 totalled GH¢1.72 billion, a shortfall 44.9 percent from the programmed
GH¢3.11 billion for the review period. This outturn was, however, lower than GH¢2.65 billion received
in the corresponding period of 2023, translating into a year-on-year decline of 83.7 percent.
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Table 6.1: Total Revenue and Grants

Prov.
Outturn
Prog
DEVIATION
Y-O-Y
Million Ghana Cedis
JAN-DEC
JAN-DEC
JAN-DEC
OVER(+) /
BELOW(-)
GROWTH
TAX REVENUE

TAXES ON INCOME & PROPERTY

Personal
16,966.80
23,604.50
22,686.40

52.5
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 Refunds

SOCIAL CONTRIBUTIONS

1,060.50

15.3
121.6
NON-TAX REVENUE

OTHER REVENUE

DOMESTIC REVENUE

GRANTS

Project Grants

Programme Grants

726.3
-100
-
TOTAL REVENUE & GRANTS

Source: Ministry of Finance


6.2 Total Expenditure
Total expenditures and net lending (excluding arrears clearance and discrepancy) for the review period
totalled GH¢226,243.5 million. This was above the target of GH¢219,749.3 million by 3.0 percent.

Compensation of employees (including wages and salaries, pensions & gratuities, and other wage
related expenditure) was GH¢67,189.0 million, higher than the target of GH¢63,683.2 million. This
outturn was above its target by 5.5 percent but recorded a 32.2 percent year-on-year growth. In terms
of fiscal flexibility, compensation of employees constituted 27.5 percent of domestic revenue mobilized
during the period under review.

Use of goods and services totalled GH¢11,509.0 million, lower than the expected target of GH¢12,081.6
million by 2.4 percent. This points to some restraint on the part of the government in controlling
discretionary spending. This expense was also higher than GH¢8,874.5 million received in the
corresponding period of 2023, reflecting a year-on-year growth of 29.7 percent.

Total interest payments of GH¢46,792.3 million was below the target of GH¢47,998.9 million for the
review period. This outturn was 50.6 percent above the GH¢31,066.2 million recorded in the
corresponding period of 2023. The reduced interest payments was mainly on account of a partial freeze
on debt service because of the debt restructuring program by Government to address Ghana’s fiscal and
debt vulnerabilities.

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
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GNPC, Ghana Infrastructure Fund and other earmarked funds all summed up to GH¢46,425.5 million,
higher than the target of GH¢40,727.1 million, resulting in an overrun of 14 percent. It also recorded a
year-on-year growth of 49.0 percent.

Capital expenditure for the period under review was GH¢29,388.7 million (2.5% of GDP), higher than
the programmed target of GH¢28,508.9 million (2.8% of GDP) by 3.1 percent. This outturn represented
a year-on-year growth of 39.4 percent over the outturn of 2023.

“Other expenditure” for year-end 2024, was GH¢23,993.3 million, 5.5 percent below the target of
GH¢25,378.8 million. Out of this, “Energy Sector Payment Shortfalls” totalled GH¢18,477.3 million
(1.6% of GDP), marginally lower than the programmed target of GH¢18,483.8 (1.8% of GDP), resulting
in a negligible deviation. This outturn compares with GH¢12,153.2 million, recorded in the
corresponding period of 2023.

Table 6.2: Total Expenditures
Million Ghana cedis

Prov.
Jan-Dec
Prov.
Jan-Dec
Prog.
Jan-Dec
DEVIATION
ER(+)/ BELO
Y-O-Y
GROWTH
Compensation of Employees

Wages & Salaries

Social Contributions

Use of Goods and Services

Interest Payment

Domestic

External (Due)

Subsidies

Grants to Other Government Units
31,163.10
46,425.50
40,727.10

Social Benefits
428.9
736.8

-15.3
71.8
Other Expenditure

o/w Energy Sector Payment Shortfalls

Capital Expenditure

Domestic financed

Foreign financed

TOTAL EXPENDITURE
155,578.30
226,243.50
219,749.30

45.4
Source: Ministry of Finance


6.3 Budget Balance and Financing
Government budgetary operations resulted in an overall budget deficit (commitment) of GH¢92,647.2
million (7.9% of GDP) for the period of January-December 2024. This was lower than the expected
target of GH¢42,529.4 million (4.2% of GDP). The corresponding primary deficit was 3.9 percent of
GDP, against a primary surplus target of 0.5 percent of GDP. On cash basis, the overall deficit was
GH¢61,410.6 million, compared with the target of GH¢54,142.2 million. This translates into 5.2 percent
of GDP, compared with a target of 5.3 percent of GDP.
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6.4 Public Debt Analysis
The stock of public debt at the end of December 2024 stood at GH¢726,680.0 million, showing an
increase of GH¢116,669.7 million over the end December 2023 stock of GH¢610,010.6 million. This
was due to accumulation of domestic debt and an exchange rate effect. In terms of GDP, the total public
debt as at end-December 2024 was 61.78 percent, lower than the 68.71 percent recorded in December
2023.
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7. Price Developments

7.0 Highlights
The first two readings of inflation in 2025 indicated some moderation in price pressures. Headline
inflation declined to 23.5 percent in January 2025, and further down to 23.1 percent in February 2025.
The drop in inflation was occasioned by easing but still high non-food inflation, which fell due to tight
monetary policy and relative exchange rate stability in the first two months of 2025. Food inflation,
however, remains elevated on account of unfavourable climatic conditions and other food supply
bottlenecks.

7.1 Domestic Inflation
Headline inflation registered two declines since the last Monetary Policy Committee (MPC) meeting.
Despite high and volatile price trends in 2024, the first two readings of inflation in 2025 indicated some
moderation in price pressures. Headline inflation declined to 23.5 percent in January 2025, and further
down to 23.1 percent in February 2025. The drop in inflation was occasioned by easing but still high
non-food inflation, which fell from 20.3 percent in December 2024 to 18.8 percent in February 2025
due to tight monetary policy and relative exchange rate stability in the first two months of 2025. Food
inflation, however, remains elevated on account of unfavourable climatic conditions and other food
supply bottlenecks. Food inflation rose from 27.8 percent in December 2024 to 28.1 percent in February
2025.

The Bank’s main measure of core inflation eased marginally in the first two months of 2025. Inflation,
excluding energy and utility items from the consumer basket, eased from 23.1 percent in December
2024 to 22.4 percent in February 2025, compared with 24.0 percent in the same period last year. This
notwithstanding, the latest inflation expectations, as derived from the Bank’s Quarterly Projection
Model, the yield curve, and surveys of businesses, consumers and the financial sector, point to softening
expectations, although still above the medium-term target.


Source: GSS and Bank of Ghana Staff Calculations
Figure 7.1a: Year on Year Inflation

Figure 7.1b: Headline vs Core
Inflation (%)
Headline
Lower Band

Core 1 (Excluding
Fuel, and Utilities)
Headline Inflation

Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb 25
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
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On a month-on-month basis, headline inflation fell to 1.3 percent in February 2025, from 1.7 percent in
January 2025 and 1.8 percent in December 2024. During the same period, monthly food inflation
dropped to 1.8 percent in February 2025 from 2.0 percent in January 2025 and 2.8 percent in December
2024. Monthly non-food inflation, however, inched up to 0.9 percent in February 2025 from 0.7 percent
in December 2024.

Inflation has broadly declined across all subgroups since the last MPC, except for transport and food
and beverages, where February figures were higher than December’s.

Figure 7.2 Month-on-Month Inflation (%)


Source: Ghana Statistical Service


Table 7.1 CPI Components
CPI Components (%)
Weghts
(%)

Dec
Dec
Dec
Jan
Feb
Mar
Jun
Sept
Dec
Jan
Feb
Overall

Food and Beverages

Non-food

Alcoholic Beverages, Tobacco & Narcotics

Clothing and footwear

Housing and Utilities

Furnishings, Household Equipment

Health

Transport

Information and Communication

Recreation & Culture

Education

Restaurants and accommodation services

Insurance and Financial services

Personal care, social protection & Miscellaneous services

Source: Ghana Statistical Service
Source: Ghana Statistical Service

-1
-2
-3


May

Apr-

Mar


May

Apr-

Mar


Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb 25
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7.2 Inflation Risk Assessment and Outlook
The global environment has grown increasingly challenging due to heightened trade and economic
policy uncertainty. The evolving series of tariffs imposed by the U.S. administration could negatively
impact the global economy, with potential spillover effects for Emerging Markets and Developing
Economies. Meanwhile, the disinflation process has stalled in some countries, and financial conditions
remain broadly restrictive as central banks slow the pace of monetary policy easing. These persistent
external headwinds may spill over into the domestic economy through trade and financial channels,
underscoring the need for proactive monetary policy measures.

Although headline inflation has eased marginally, it remains a key concern. Both food and non-food
inflation are significantly higher than expected, while core inflation stays elevated. While supply-side
factors have been the primary driver of food inflation, preventing second-round effects from these price
increases will be critical. The persistent inflationary pressures observed over the past year — partly due
to fiscal and monetary policy missteps — necessitate a policy reset to strengthen the disinflation
process. Restoring price stability will require maintaining a tight monetary policy stance, strengthening
liquidity management, and adhering to the 2025 budget, which aims to reinstate fiscal consolidation.

Decision on the Monetary Policy Rate
Under the circumstances, the Monetary Policy the Committee, by a majority decision, decided to raise
the Monetary Policy Rate by 100 basis points to 28.0 percent to re-anchor the disinflation process. The
Bank’s latest inflation forecast reflects a steady decline and return to the path of disinflation, with the
aim of achieving the medium-term target of 8±2 percent in the second quarter of 2026.
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APPENDIX

Table A1: Sources of Growth in Total Liquidity (GH¢ Millions, unless otherwise stated)
Appendix 1: Sources of Growth in Total Liquidity (M2+) (millions of Ghana cedis unless otherwise stated)
Feb-23
Dec-23
Feb-24
Mar-24
Jun-24
Sep-24
Nov-24
Dec-24
Jan-25
Feb-25
1 Net Foreign Assets

Bank of Ghana

Commercial Banks

2 Net Domestic Assets
212950.35 228308.31 225447.39 227034.13 231954.03 245378.55 251851.07 242321.48 242688.74 240088.97

ow: Claims on government (net)
146064.22 115681.46 123262.55 118345.15 117391.93 130147.19 131327.71 113291.69 118181.10 124364.42

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

BOG OMO Sterilisation Acc.
(18296.64) (24795.37) (29850.45) (22605.87) (16244.51) (21138.18) (23492.53) (18142.88) (21697.37) (23038.55)
5 Total Liquidity (M2+)
202112.25 250019.20 253699.10 261119.50 281039.02 311180.28 326166.62 329738.77 333079.86 337575.65

ow: Broad Money Supply (M2)
143732.50 185425.80 184855.96 190181.12 203530.25 229253.49 244128.78 247761.93 245143.87 249466.30

ow: Foreign Currency Deposits(¢million)

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

9 Net Domestic Assets


ow: Claims on government (net)


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


ow: BOG OMO Sterilisation Acc.

12 Total Liquidity (M2+)


Broad Money Supply (M2)


Foreign Currency Deposits (FCDs)

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

16 Net Domestic Assets


o/w: Claims on government (net)

18 Broad Money(M2+)

Annual per cent contribution to money growth
19 Net Foreign Assets

20 NDA

21 Total Liquidity (M2+)

Memorandum items
22 Reserve Money

23 NFA ($million)

24 Currency ratio

25 FCD/M2+

26 FCD/Total Deposit

27 RM multiplier

Source: Bank of Ghana Staff Calculations
Table A2: Sources of Growth in Reserve Money (GH¢ Millions, unless otherwise stated)
Appendix 2: Sources of Growth in Reserve Money (millions of Ghana cedis unless otherwise stated)
Feb-23
Dec-23
Feb-24
Mar-24
Jun-24
Sep-24
Nov-24
Dec-24
Jan-25
Feb-25
1 Net Foreign Assets ( NFA)
(21493.9) 4021.1
9522.0
13251.3 23057.2 34489.4 35652.9 47647.1 48664.9 58014.9
2 Net Domestic Assets ( NDA)
88154.7 84278.4 73998.3 75760.0 87521.1 86282.1 98914.5 82834.6 89103.0 82978.0
of which:

ow: Claims on government (net)
88867.5 54356.1 55130.3 50086.8 55138.4 69537.6 68939.8 56031.5 55619.5 60833.1

Claims on DMB's (net)
(6256.6) (9878.4) (14738.0) (16020.1) (13451.5) (26897.1) (17002.5) (21783.3) (13166.6) (21892.5)

OMO Sterilisation Account.
(18296.6) (24795.4) (29850.4) (22605.9) (16244.5) (21138.2) (23492.5) (18142.9) (21697.4) (23038.5)
6 Reserve Money ( RM)
66660.5 88299.4 83520.3 89011.3 110578.3 120771.5 134567.4 130481.7 137768.0 140992.9

ow:Currency
31005.6 37620.7 37132.1 39677.6 44895.6 52752.8 62344.8 64127.7 62612.6 61029.7

DMB's reserves
30558.4 38050.2 39834.5 42754.5 58972.2 60760.4 65111.7 58769.1 67516.5 72109.5

Non-Bank deposits

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

11 Net Domestic Assets


ow: Claims on government (net)


Claims on DMB's (net)


OMO Sterilisation Account.

15 Reserve Money ( RM)


ow:Currency

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

18 Net Domestic Assets ( NDA)


o/w: Claims on government (net)

20 Reserve Money ( RM)

Annual per cent contribution
21 Net Foreign Assets

22 Net Domestic Assets ( NDA)

23 RM growth ( y-o-y)

Source: Bank of Ghana Staff Calculations
PUBLIC

Table A.3: Asset and Liability Structure of the Banking Sector
Feb-22
Feb-23
Feb-24
Dec-24
Feb-25
Components of Assets (% of Total)
Cash and Due from Banks

Investments

Net Advances

Others

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

Total Borrowings

Shareholders' Funds

Other Liabilities

Source: Bank of Ghana Staff Calculations

Table A.4: Credit Growth
Economic Sector
Feb-23
Gh¢million
Feb-24
Dec-24
Feb-25
y/y growth (%)
Feb-24
Feb-25
Public Sector

Private Sector

- Private Enterprises

o/w Foreign

Indigeneous

- Households

Gross Loans

Source: Bank of Ghana Staff Calculations

Table A.5: Contingent Liabilities
Feb-22
Feb-23
Feb-24
Dec-24
Feb-25
Contingent Liabilities (GH¢million)

Growth (y-o-y)

% of Total Liabilities

Source: Bank of Ghana Staff Calculations

Table A.6: Distribution of Loans and NPLs by Economic Sector (%)
Feb-23
Feb-24
Dec-24
Feb-25
Share in
Total Credit
Share in
NPLs
Share in
Total Credit
Share in
NPLs
Share in
Total Credit
Share in
NPLs
Share in
Total Credit
Share in
NPLs
a. Public Sector

i. Government

ii. Public Institutions

iii. Public Enterprises

b. Private Sector

i. Private Enterprises

o/w Foreign

Indigeneous

ii. Households

iii. Others

Source: Bank of Ghana Staff Calculations
PUBLIC

Table A.7: Liquidity Ratios
Feb-22
Feb-23
Feb-24
Dec-24
Feb-25
Liquid Assets (Core) - (GH¢'million)

Liquid Assets (Broad) -(GH¢'million)

Liquid Assets to total deposits (Core)-%

Liquid Assets to total deposits (Broad)- %

Liquid assets to total assets (Core)- %

Liquid assets to total assets (Broad)- %

Source: Bank of Ghana Staff Calculations


Table A.8: Profitability Indicators (%)
Feb-23
Feb-24
Dec-24
Feb-25
Gross Yield

Interest Payable

Spread

Asset Utilitisation

Interest Margin to Total Assets

Interest Margin to Gross income

Profitability Ratio

Return On Equity (%) after tax

Return On Assets (%) before tax

Source: Bank of Ghana Staff Calculations

Table A.9: DMBs’ Income Statement
Feb-23
Feb-24
Dec-24
(GH ¢'million)
Feb-25
Feb-24
Dec-24
Y-on-y Growth (%)
Feb-25
Interest Income

Interest Expenses

Net Interest Income

Fees and Commissions (Net)

Other Income

Operating Income

Operating Expenses

Staff Cost (deduct)

Other operating Expenses

Net Operating Income

Total Provision (Loan losses,
Depreciation & others)

Income Before Tax

Tax

Net Income

Gross Income

Source: Bank of Ghana Staff Calculations
PUBLIC

Table A.10: Developments in Offshore Balances
Feb-22
Feb-23
Feb-24
Dec-24
Feb-25
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


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

42.7
57.3


Dec-20

Dec-21

Dec-22

Dec-23


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Source: Ghana Statistical Service
Bank of Ghana