PUBLIC
PUBLIC
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 120th meeting held in September 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 – September 2024
www.bog.gov.gh

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table of Contents


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Overview
Global growth continued at a steady pace in the second quarter of 2024, supported by stronger spending, a resilient services
sector, and declining crude oil prices. However, continued weakness in the manufacturing sector, moderating growth momentum
in China, cooling labour markets in advanced economies, escalating geopolitical tensions, and rising uncertainties related to
elections in many countries could potentially weigh on growth prospects in the second half of 2024. The latest projections by the
International Monetary Fund forecasts growth to remain unchanged at 3.2 percent for 2024 and increase slightly to 3.3 percent in
2025.

Global inflation continues to slow down, on account of declining crude oil and food prices and moderating wage growth.
Core inflation has also declined in both advanced and emerging market economies, with the weakening US dollar playing a crucial
role in alleviating inflationary pressures for Emerging Market and Developing Economies. Looking ahead, the ongoing global
disinflation is expected to continue, albeit at a slower pace.

Central banks in major advanced economies have begun the much-anticipated policy easing cycle amid declining inflation
rates. The Federal Reserve Bank, the European Central Bank and the Bank of England have all reduced their policy rates in recent
months as inflation gradually approaches targets in these countries and areas.

Provisional GDP data from the Ghana Statistical Service for the second quarter of 2024 indicated a stronger growth
outturn than expected. Real GDP grew by 6.9 percent in the second quarter of 2024, compared with 2.5 percent in the
corresponding quarter of 2023, and 4.7 percent in the first quarter of 2024. Trends in the Bank’s high frequency real sector
indicators also point to a sustained pickup in economic activity, together with a rebound in both consumer and business confidence.

Domestic price developments since the last MPC indicate that the disinflation process remains on track. This was largely
supported by the still tight monetary policy stance and easing food inflation. Headline inflation has declined consistently since the
last MPC to 20.4 percent in August, from 22.8 percent in June, and 20.9 percent in July 2024, driven mainly by food inflation.

Provisional data on budget execution from January to July 2024 indicated an overall fiscal deficit (commitment basis) of
2.4 percent of GDP, against the budget target of 2.8 percent of GDP. The deficit of GH¢24.8 billion was financed from
domestic (GH¢ 24.2 billion) and foreign (GH¢17.4 billion) sources. The primary balance for the period was a deficit of GH¢3.8
billion (0.4% of GDP), against a primary deficit target of GH¢3.5 billion (0.3% of GDP).

The banking sector’s performance continued to improve, with assets growing at 38.7 percent at end-August 2024,
compared to 19.6 percent in August 2023. Both pre-tax and after-tax profits were higher in the first eight months of 2024 relative
to the same period last year. With regards to solvency, the Capital Adequacy Ratio (CAR) of the industry stood at 10.3 percent in
August 2024, higher than the 7.5 percent recorded in August 2023. With reliefs, CAR was 13.8 percent in August 2024, compared
to 14.2 percent in August 2023.

The external payment position was strong in the first eight months. The trade balance recorded a provisional surplus of
US$2.78 billion, higher than the surplus of US$1.66 billion recorded in the corresponding period of 2023. The surplus was
primarily driven by an increase in gold and crude oil exports. The strong buildup in international reserves continued into August
2024. Gross International Reserves increased by US$1.58 billion to US$7.50 billion at end-August 2024, equivalent to 3.4 months
of import cover.

After coming under pressure in May and June, the exchange rate has generally stabilized. The observed stability beyond the
first half of the year, is mainly driven by the maintenance of a still tight monetary policy stance and improved forex liquidity
support. From the beginning of the year to 25th September 2024, the Ghana cedi depreciated by 24.3 percent against the US dollar.
Between June 2024 and September 25, 2024, the depreciation of the cedi stood at 7.1 percent.

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
1. Global Economic Developments

1.0 Highlights
Since the last Monetary Policy Committee, the external environment has improved as global economic activity
remained resilient in the second quarter of 2024. Global growth has been supported by private and government
spending, a resilient services sector and declining oil prices. Additionally, the anticipated policy easing cycle initiated
by major central banks in advanced economies, in response to declining inflation rates, have also been supportive of
growth. The latest projections by the International Monetary Fund forecasts growth to remain unchanged at 3.2
percent for 2024 and increase slightly to 3.3 percent in 2025.

Global inflation continues to slow down, on account of declining crude oil and food prices, and moderating wage
growth. Core inflation has also declined in both advanced and emerging market economies, with the weakening US
dollar playing a crucial role in alleviating inflationary pressures for Emerging Market and Developing Economies.

1.1 Global Growth Developments
Global growth continued at a steady pace in the second quarter of 2024, supported by stronger spending, a resilient
services sector, and declining crude oil prices. However, continued weakness in the manufacturing sector, moderating
growth momentum in China, cooling labour markets in advanced economies, escalating geopolitical tensions, and
rising uncertainties related to elections in many countries could potentially weigh on growth prospects in the second
half of 2024. Economic activity in the third quarter of the year is expected to slow down, reflecting weakness in
manufacturing due to higher borrowing costs and lower export demand. The latest IMF World Economic Outlook
growth projections remain unchanged at 3.2 percent for 2024 and 3.3 percent in 2025.

In the outlook, the balance of risks to growth remains on the downside. Incoming high frequency data points to a
slowdown in activity in major economies such as the US and China. Interest rates remain relatively high, despite the
resumption of rate cuts by major central banks, and the continuing weakness in manufacturing may likely spill over to
the services sector. Also, geopolitical tensions in the Middle East and the escalation of the war between Russia and
Ukraine are key downside risks to global growth.


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table 1.1: Global Growth Projections (%)

Source: IMF, WEO Julyl 2024, Update


1.2 Global Price Developments
Global disinflation has continued amid a relatively tight monetary policy, declining oil prices and moderating wage
growth. Inflation is steadily declining towards central bank targets in many advanced economies, supported by
moderating services inflation. Declining prices also reflect falling oil prices due to weaker-than-expected demand,
especially in China, and a drop in the FAO Food Price Index in August on account of falling cereal, meat and dairy
prices. Meanwhile, headline inflation expectations for 2025 remain broadly unchanged, but projections have been
revised lower for 2026, reflecting continued tightening policy stance and the gradual decline in headline and core
inflation. In the outlook, the ongoing global disinflation is expected to continue, although at a slower pace.

Figure 1.1: Headline Inflation Rates (%)


Source: Bank of Gana, /Trading Economics


Overview of the World Economic Outlook Projections
(Percent change)
Estimates

World
3.3
3.2
3.3
Advanced Economies
1.7
1.7
1.8
United States
2.5
2.6
1.9
Euro Area
0.5
0.9
1.5
Germany
–0.2
0.2
1.3
France
1.1
0.9
1.3
Italy
0.9
0.7
0.9
Spain
2.5
2.4
2.1
Japan
1.9
0.7
1.0
United Kingdom
0.1
0.7
1.5
Canada
1.2
1.3
2.4
Other Advanced Economies
1.8
2.0
2.2
Emerging Market and Developing Economies
4.4
4.3
4.3
China
5.2
5.0
4.5
India
8.2
7.0
6.5
Russia
3.6
3.2
1.5
Brazil
2.9
2.1
2.4
Mexico
3.2
2.2
1.6
Sub-Saharan Africa
3.4
3.7
4.1
Nigeria
2.9
3.1
3.0
South Africa
0.7
0.9
1.2
Year over Year
Projections

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
1.3 Global Financial Markets Developments
Global financial conditions are expected to ease in the near term as major advanced economy central banks have begun
the anticipated easing cycle amid declining inflation rates. The US Federal Reserve cut its policy rate by 50 basis points
(bps) in September 2024 and has signalled another rate cut by the end of the year amid moderating wage growth and
lower inflation. Also, the European Central Bank has resumed its easing cycle after periods of sluggish growth and
cooling inflation. Additionally, the Bank of England has started to ease its policy rate as headline inflation hit the 2.0
percent target. The expectation of lower policy rates has brought down long-term bond yields and driven a recovery in
equity prices. Reflecting falling yields in advanced economies, portfolio flows to emerging market economies have
strengthened as investors search for higher yields.


Table 1.2: Monetary Policy Stance of Selected Central Banks

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

1.4 Currency Markets
On the international currency market, the US dollar weakened in July and August as investors anticipated a rate cut in
September. The rate of depreciation of the Ghana cedi has declined since May 2024 on both the interbank and forex
bureau markets. The easing pressure reflected positive sentiments from Bank of Ghana’s improved forex liquidity
support, and the revision of advanced payment guidelines for importers.

Recent policy easing by the US Federal Reserve together with continued market support from the Central Bank is
expected to provide some cushion to the cedi and help stabilize the forex market. However, uncertainties surrounding
the cocoa syndicated loan and the expected forex obligations as part of the debt restructuring may weigh on the
currency. Pressures could also come from seasonal demand in the fourth quarter, and election-related expenditures.

On the interbank market, the cedi depreciated by 21.8 percent, 24.1 percent and 21.8 percent against the dollar, the
pound sterling, and the euro, respectively, on a year-to-date basis in August 2024. This is against a depreciation of 22.2
percent, 26.1 percent and 23.5 percent, respectively, during the same comparative period in 2023.
Country
Policy rate -
Previous (%)
Policy Rate
Current (%)
Forecast
Inflation
July, 2024
Inflation
August, 2024 Real rate Infl Target
Overall
Fiscal
Deficit
(2023,%
of GDP)
GDP
Growth
(Dec.2023)
Gross
Debt/GDP
(2023,%)
YTD
Depr/Sept
. 17th
U.S

Euro Area

< 2%

UK

Japan


Russia


India

4±2%

Brazil

4.5±1.5%

Turkey

61.78
51.97
-1.97
5±2%

Malaysia


Indonesia

3.5% ± 1%
-1.6

39.9
-0.02
Chile

3±1%

Ghana

20.9
20.4
8.6
8±2%

South Africa
8.25
8.25


Nigeria

Kenya


Zambia

Morocco


70.6
1.26
Angola

Egypt

7± 2%


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC


Table 1.3: Interbank Exchange Rates

Source: Bank of Ghana Staff Calculations

The cedi depreciated by 28.3 percent in nominal trade weighted terms and 28.0 percent in forex transaction weighted
terms, respectively, on a year-to-date basis in August 2024. This is against a depreciation of 28.8 percent and 30.3
percent, respectively, in the same period in 2023.

In real bilateral terms, the cedi depreciated by 14.7 percent, 17.1 percent and 14.3 percent against the dollar, the pound
sterling and the euro, respectively, on a year-to-date basis in August 2024. Comparatively, for the corresponding period
in 2023, the cedi’s real exchange rate depreciated by 13.6 percent, 18.9 percent, and 14.4 percent.

The cedi depreciated by 14.6 percent and 14.7 percent in real trade weighted terms and real forex transaction weighted
terms, respectively, on a year-to-date basis, in August 2024. This compares with a depreciation of 14.7 percent and
13.7 percent for the same period in 2023.


US$/GHC*
Monthly
depreciation/a
ppreciation
Year-to-Date
depreciation/
appreciation
GBP/GHC*
Monthly
depreciation/a
ppreciation
Year-to-Date
depreciation/
appreciation
Euro/GHC*
Monthly
depreciation/
appreciation
Year-to-Date
depreciation/a
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

Mar

Apr

May

June

July

Aug


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table 1.4: Nominal Effective Exchange Rate

Source: Bank of Ghana Staff Calculations


Table 1.5: Real Bilateral Exchange Rate

Source: Bank of Ghana Staff Calculations


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

May-24

Jun-24

Jul-24

Aug-24

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

May-24

Jun-24

Jul-24

Aug-24


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table 1.6: Real Effective Exchange Rate for Major Trade Partners

Source: Bank of Ghana Staff Calculations


1.5 Global Economic Outlook and Risks
Global growth remained strong in the second quarter of 2024, and the ongoing disinflation also continued. Amid falling
prices, policy easing has begun in major advanced economies and the US dollar index has declined due to the expected
rate cuts. Reflecting the anticipated policy easing cycle, pressures on emerging market currencies have moderated,
while portfolio flows to emerging markets and developing economies have strengthened. In the outlook, the ongoing
global disinflation is expected to continue, albeit at a slower pace. The expectation for lower policy rates has brought
down long-term bond yields, supported a rebound in equity prices, and led to a strengthening of portfolio flows to
emerging market and developing economies in recent months as investors search for higher yields. Further declines in
the policy rate in advanced economies is expected to result in an ease in global financial conditions in the near term.


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

May-24

Jun-24

Jul-24

Aug-24

RTWI and FXRTWI

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
2. External Sector Developments

2.0 Highlights
The external payment position continues to improve, characterized by a higher trade surplus, and strong reserves
build-up. International reserves have been boosted, driven by a significant improvement in the current account balance
—on account of gold exports and remittance inflows— and lower net outflows from the financial account driven in
large part by improved FDI inflows, lower portfolio reversals, lower interest payments on public debt, and financial
inflows from the IMF and World Bank. These developments resulted in an overall balance of payments surplus of
US$942.0 million for the first half of 2024 compared, with a deficit of US$341.0 million recorded for the first half of
2023.

2.1 Commodity Price Trends
Cocoa prices declined for the second consecutive month into August 2024, by 7.3 percent, to settle at an average price
of US$7,409.5 per tonne. This was partly due to an improved outlook for the 2024/25 crops season in West Africa
despite the extreme weather conditions and diseases experienced in some cocoa growing areas. From the beginning of
the year to August 2024, cocoa prices increased significantly by 74.9 percent.

Brent crude oil prices declined by 5.9 percent to settle at an average price of US$78.92 per barrel in August 2024.
Prices fell on concerns about slowing demand in China and the US. On year-to-date basis, oil prices increased by 2.1
percent, largely on concerns about supply disruptions due to geopolitical tensions and planned output cuts by OPEC+.

In contrast, gold prices rose by 3.3 percent relative to the previous month to average US$2,469.39 per fine ounce in
August 2024. From the beginning of the year to August 2024, gold prices have increased by 21.3 percent, largely
explained by the expectation of rates cuts by the US Federal Reserve and geopolitical tensions, both of which boosted
the safe-haven appeal of the metal.

2.1.1 Commodity Price Index
The weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude oil) fell by 1.6
percent to 188.7 in August 2024. The decrease was on account of a fall in the cocoa and crude oil sub-indices (by 7.3%
and 5.9%, respectively), which more than offset the increase (3.2%) in the gold sub-index.


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC


Source: Reuters


Source: Reuters

2.2 Trade Balance
In the first eight months of 2024, the trade balance recorded a provisional surplus of US$2.78 billion, higher than the
surplus of US$1.66 billion recorded in the corresponding period of 2023. The improved trade surplus resulted from a
higher increase in exports relative to imports.

Total exports increased by 22.3 percent to US$12.92 billion, largely driven by a robust increase in gold and crude oil
exports, notwithstanding the sharp drop in cocoa exports. The value of gold exports increased by 62.2 percent to
US$7.27 billion, driven by both volume and prices. The volume of gold exports increased by 38.1 percent to 3.37
million ounces. The average realized price for gold increased by 17.5 percent to US$2,154.2 per fine ounce. Earnings
from crude oil exports increased by 16.9 percent to US$2.77 billion, due largely to higher production volumes from
the Jubilee Field. Earnings from cocoa exports (both beans and products), in contrast, dropped by 42.7 percent, from
US$1.60 billion in the first eight months of 2023 to US$917.8 million in August 2024. This reflected the challenges
in the cocoa sector, including extreme weather conditions, diseases and smuggling. Earnings from “other exports”
(including non-traditional exports) declined by 8.2 percent to US$1.97 billion.

On the import side, the total imports bill rose by 14.0 percent to US$10.14 billion in the first eight months of the year,
driven by both oil and non-oil imports. Oil imports increased by 3.6 percent to US$3.0 billion, with non-oil imports
increasing by 19.0 percent to US$7.1 billion.

2.3 International Reserves
The strong buildup in international reserves continued into August 2024. Gross international reserves increased by
US$1.58 billion to US$7.50 billion at end-August 2024, equivalent to 3.4 months of import cover. Net international
reserves also increased by US$1.73 billion to US$4.92 billion at end-August 2024. The higher build-up in Gross
Reserves was largely on account of the strong performance of the domestic gold purchase programme.
Figure 2.1: International Cocoa Prices (US$/metric tonnes)

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

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

Figure 2.4: Commodity Price Index


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC

2.4 Commodity Price Outlook
Trends in the prices of Ghana’s major export commodities were mixed. Cocoa prices stabilised well below peaks
reached in April, as favourable weather contributed to an improved outlook for the 2024/2025 crop season in West
Africa. The oil market is expected to remain elevated on concerns of escalating geopolitical tensions in the Middle
East, announcement by OPEC+ of delay in increasing output until December, and reduced inventories. This is despite
the increasing demand worries in China and the US on the back of slowing economic activity. Looking ahead to the
end of the year, the balance of payments is projected to record a surplus, driven by increased exports, stronger
remittance growth, and lower government external payments.

Table 2.1: Trade Balance (US$ million)

Source: Bank of Ghana

Table 1

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

Trade Bal (% GDP)
2.1
2.2
3.3
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

Crude Oil ( $'M)
21.20 113.72 95.77
-17.9
-15.8
Volume (barrels)
203,488 1,510,925 1,142,386
-368,539.5
-24.4
Unit Price ($/bbl)
104.16 75.26 83.83
8.6
11.4
Gas ( $'M)
112.31 148.27 151.71
3.4
2.3
Volume (MMBtu)
14,470,136 17,122,679 17,292,781
170,101.2
1.0
Unit Price ($ mmBtu)
7.76 8.66 8.77
0.1
1.3

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
3. Real Sector Developments

3.0 Highlights
The domestic economy continues to recover, evidenced by the stronger-than-expected GDP growth outturn for the
second quarter of the year. Growth in the second half of the year is also expected to be firm. This sentiment is supported
by the latest high frequency real sector indicators, which point to a sustained pickup in economic activity in July 2024,
compared to a year ago. Consumer and business confidence have also rebounded, amidst improving macroeconomic
conditions.

3.1 Economic Growth
Provisional GDP data from the Ghana Statistical Service for the second quarter of 2024 indicated a stronger growth
outturn, with real GDP growth of 6.9 percent in the second quarter of 2024, compared with 2.5 percent in the
corresponding quarter of 2023, and 4.7 percent in the first quarter of 2024. Non-oil GDP growth was 7.0 percent,
compared with 3.1 percent in the same period of 2023. The growth outturn was largely driven by a strong performance
in the industry sector, which grew by 9.3 percent, having contracted by 2.6 percent in the same period last year. The
services and agricultural sectors also grew by 5.8 percent and 5.4 percent, respectively.


Figure 3.1: Quarterly GDP Growth (y/y, %)

Source: Ghana Statistical Service


3.2 Trends in Real Sector Indicators
Consumer Spending
Consumer spending, proxied by domestic VAT collections and retail sales, posted a positive performance in July 2024,
compared with the corresponding period in 2023. It increased by 46.2 percent on a year-on-year basis to GH¢1.33
billion in July 2024, from GH¢906.60 million in July 2023. Cumulatively, total domestic VAT for the first seven
months of 2024 went up by 19.2 percent to GH¢8.91 billion, compared with GH¢7.48 billion for the corresponding
period of last year.

Retail sales increased by 27.4 percent (year-on-year) to GH¢214.64 million in July 2024, up from the GH¢168.46
million recorded in the same period in 2023. On a month-on-month basis, retail sales improved marginally by 2.6

2022Q1
2022Q2
2022Q3
2022Q4
2023Q1
2023Q2
2023Q3
2023Q4
2024Q1
2024Q2
Oil GDP
Non-Oil GDP

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
percent in July 2024, from GH¢209.13 million in the preceding month. In cumulative terms, sales for the first seven
months of 2024 went up by 21.7 percent, due to increased household consumption.

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), increased in July
2024. Total direct taxes collected increased by 40.4 percent (year-on-year) to GH¢4.59 billion in July 2024, relative to
GH¢3.27 billion recorded for the same period in 2023. Cumulatively, the total amount collected for the first seven
months of 2024 went up by 44.5 percent to GH¢37.70 billion, from GH¢26.09 billion for the same period in 2023. In
terms of contributions of the various sub-tax categories, income tax (PAYE and self-employed) accounted for 43.5
percent, corporate tax accounted for 33.1 percent, while “Other Tax Sources” contributed 23.4 percent.

Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 29.4 percent in yearon-year terms to GH¢472.81 million in July 2024, from GH¢365.26 million collected during the corresponding period
in 2023. Cumulatively, for the first seven months of 2024, the contribution grew by 25.6 percent to GH¢2.84 billion,
relative to GH¢2.26 billion recorded in the same period in 2023.

Construction Sector Activities
Activity in the construction sub-sector, proxied by the volume of cement sales, increased by 22.4 percent (year-onyear) in July 2024 to 238,167.80 tonnes, up from 194,597.00 tonnes recorded a year ago. On a month-on-month basis,
it increased by 3.8 percent in July 2024 compared with 229,351.36 tonnes recorded in June 2024. Sales for the first
seven months of 2024 went up by 3.3 percent to 1.60 million tonnes, from 1.55 million tonnes for the same period in
2023. The relative improvement in total cement sales, year-on-year, was due to an uptick in construction activities
during the review period.

Vehicle Registration
Transport sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing Authority
(DVLA), increased by 24.3 percent to 14,912 in July 2024, from 12,000 vehicles registered during the corresponding
period of 2023. Cumulatively, vehicles registered by the DVLA within the first seven months of 2024 increased by
13.5 percent to 111,156, from 97,975 recorded a year ago.

Industrial Consumption of Electricity
Industrial consumption of electricity declined by 9.0 percent in July 2024 to 283.26 gigawatts, as against 311.35
gigawatts recorded for the corresponding period in 2023. In cumulative terms, electricity consumed by industries for
the first seven months of 2024 decreased by 7.5 percent to 1,963.46 gigawatts, from 2,122.09 gigawatts for the
corresponding period a year ago.

Passenger Arrivals
Passenger arrivals increased by 16.8 percent on year-on-year terms to 121,995 in July 2024, up from 104,460 arrivals
recorded a year ago. Compared to June 2024, passenger arrivals went up by 15.8 percent. For the first seven months
of 2024, there were 724,412 arrivals recorded at the international airport and the land borders, compared with 616,101
for the corresponding period in 2023, representing a growth of 17.6 percent.


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
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 2.6
percent, year-on-year, to 58,330 in July 2024, from 56,860 in July 2023. Cumulatively, total container traffic for the
first seven months of 2024 went up by 12.3 percent to 401,845, compared with 357,680 for the corresponding period
of last year.

3.3 Labour Market Activity
Private Sector Pension Contributors
Total number of private sector contributors to the Social Security and National Insurance Trust (SSNIT), which
partially gauges employment conditions, went up by 2.7 percent to 1,018,445 in July 2024, compared with 991,922
for the same period in 2023. The cumulative number of private sector contributors increased by 5.1 percent in the first
seven months of the year to 7,156,941, from 6,806,775 recorded over the corresponding period in 2023.

Advertised Jobs
The number of jobs advertised in selected print1 and online2 media, which partially gauges labour demand in the
economy, increased in August 2024 relative to what was observed in the corresponding period a year ago. In total,
3,123 job adverts were recorded, as compared with 2,775 for the same period in 2023, indicating an improvement of
12.5 percent (year-on-year). However, on a month-on-month basis, the number of job vacancies declined in August
2024 by 22.4 percent, from the 4,027 jobs advertised in July 2024. The total number of advertised jobs for the first
seven months of the year went up by 9.5 percent to 24,428, compared with 22,303 recorded during the same period in
2023.

3.4 Composite Index of Economic Activity (CIEA)
The Bank’s updated real Composite Index of Economic Activity (CIEA) recorded an annual growth of 1.6 percent in
July 2024, compared to a contraction of 2.8 percent for the corresponding period of 2023. Construction activities,
consumption demand by households and firms, exports, imports, and tourist arrivals contributed to the improvement
in economic activity during the period.

3.5 Consumer and Business Surveys
The latest confidence surveys conducted in August 2024 showed a rebound in both consumer and business confidence.
The Consumer Confidence Index improved to 87.6 in August 2024, from 81.2 in June 2024, on account of easing
inflationary pressures, which has led to optimism about future economic conditions. Similarly, the Business
Confidence Index increased to 91.1 from 88.8 as firms met their short-term targets and expressed positive sentiments
about company and industry prospects amidst improving macroeconomic conditions. The survey findings were broadly
in line with observed trends in Ghana’s Purchasing Managers’ Index (PMI), which improved to 51.1 in August 2024
from 50.1 in the previous month.


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 – September 2024

PUBLIC
PUBLIC

Figure 3.2: High Frequency Economic Indicators

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

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

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

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

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

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

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

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC


Source: Bank of Ghana, Various Stakeholders
...Commercial banks' credit to the private sector improved in July 2024 relative
to the pevious month...
...Industrial activity, proxied by industrial consumption of electricity,
increased...
...Imports improved while Exports remained largely unchanged in July 2024
compared to June 2024...

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

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

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


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

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
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
Passenger Arrivals
Dom VAT
Real CIEA growth (%)
Contribution to Real CIEA growth

Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Job Adverts
Panel 2:
Ghana's Leading Indicators of Economic Activity
...On a year-on-year basis, the real CIEA grew by 1.6 percent in July 2024,
compared with a contraction of 2.8 percent in July 2023...
...The growth in the real CIEA was driven by a pick-up in Cement Sales, Domestic
VAT, Exports, Imports, Passenger Arrivals and Port Activity...
...Demand for labour, proxied by the number of job adverts (in print and
online media), declined in August 2024...
Number of advertised jobs

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC


Source: Bank of Ghana, Various Stakeholders
...Business confidence increased as firms met their short-term targets and
expressed positive sentiments about company and industry prospects amidst
improving macroeconomic conditions ....
...Vehicle registration increased in July 2024 compared to the month before...
...Consumer confidence improved on account of easing inflationary
pressures which has led to optimism about future economic conditions ...


Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Vehicle Registration
91.1

Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Index
Business Confidence Index
87.6

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

Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Billion, GHC
Domestic taxes, Direct
...Domestic tax collection decreased in July 2024 compared to June 2024...

2022Q4
2023Q1
2023Q2
2023Q3
2023Q4
2024Q1
2024Q2
Percent
Agricuture
Industry
Services
Annual sectoral real GDP growth rate, y/y

2022Q4
2023Q1
2023Q2
2023Q3
2023Q4
2024Q1
2024Q2
Percent
Oil GDP
Non-Oil GDP
Annual real GDP growth rate, y/y
...Real Oil and Non-Oil GDP grew by 6.9 percent and 7.0 percent respectively
in 2024Q2, compared with growth rates of 2.5 percent and 3.1 percent
respectively in the corresponding period of 2023...
...The 2024Q2 growth outturn was largely driven by the industry sector, which grew
by 9.3 percent, having contracted by 2.6 percent same time last year...
Panel 3:
Ghana's Leading Indicators of Economic Activity
Number of vehicles

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
4. Monetary and Financial Developments

4.0 Highlights
Developments in August 2024 showed a decline in total liquidity relative to the corresponding period in 2023. Annual
growth in M2+ declined to 37.1 percent in August 2024, relative to 40.8 percent in August 2023, due to a moderation
in the pace of growth in Net Domestic Assets of depository institutions. In contrast, Net Foreign Assets of depository
institutions increased significantly, reflecting a net build-up in foreign assets. The decline in broad money supply was
reflected in a slower pace of growth in demand deposits, savings and time deposits, and foreign currency deposits.
Growth in currency held by the public, however, increased over the same comparative period. Private sector credit
continued to grow at 21.7 percent (year-on-year) in August 2024, from a year-on-year growth of 10.7 percent in August
2023.

4.1 Developments in Monetary Aggregates
Money Supply
In August 2024, there was a decline in the annual growth in broad money supply (M2+) relative to the corresponding
period of 2023, mainly driven by moderation in the pace of growth in the Net Domestic Assets (NDA) of depository
institutions, underpinned by the tight monetary policy stance. In contrast, Net Foreign Assets (NFA) of the depository
institutions increased significantly, reflecting a net build-up in foreign assets. Annual growth in M2+ declined to 37.1
percent in August 2024, relative to 40.8 percent in the corresponding period of 2023. The contribution of NDA to the
growth of M2+ decreased to 10.6 percent from 33.7 percent, while that of NFA increased to 26.5 percent from 7.0
percent, over the same comparative period. In terms of annual growth rates, NDA expanded by 10.4 percent in August
2024, relative to 30.9 percent in August 2023, while NFA expanded by 1,745.8 percent, relative to 76.7 percent, over
the same comparative period.


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

Source: Bank of Ghana

Net Foreign Assets
NDA
Total Liquidity (M2+)
Figure 4.1b: Banking Sector NDA and its Sources
(% Contributions)

Source: Bank of Ghana
-100.00
NCG
Claims on Priv. Sect. (Incl. PE's)
BOG OMO Steril. Acc.
OIN

Monetary Policy Report, BOG Research Department – September 2024

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

The decline in the contribution of the NDA in the growth of M2+ was mainly driven by contraction in the Net Claims
on Government (NCG), and moderated by increased investments in BOG bills and Other Items (Net) (OIN).

The decline in the growth of M2+, largely reflected in declines in the growth in demand deposits, savings and time
deposits, and foreign currency deposits relative to same period in 2023. Growth in currency with the public, however,
increased over the same comparative period.

4.2 Reserve Money
Growth in Reserve Money (RM) continued to increase in August 2024, largely on the back of significant expansion in
the Net Foreign Assets (NFA), driven by proceeds from Gold for Reserve (G4R) Programme, forex purchases, and
some inflows from the IMF. The growth in RM was also underpinned by the dynamic Cash Reserve Requirement
(CRR), which led to an increase in reserves by Deposit Money Banks (DMBs) to shore up regulatory reserves. Annual
growth in RM increased significantly to 86.2 percent in August 2024 from 25.5 percent recorded in the corresponding
period of 2023.

Growth in NDA declined on the back of contraction in the NCG, reflecting the lingering impact of the Domestic Debt
Exchange Programme (DDEP) on the Central Bank balance sheet. Meanwhile, net claims on DMBs declined, due to
the build-up in foreign currency deposits of banks with the Central Bank. The contribution of NDA to the growth in
RM declined to 15.0 percent in August 2024 from 30.6 percent recorded in August 2023. In contrast, the contribution
of the NFA to the growth in RM increased to 71.2 percent from negative 5.1 percent recorded over the same
comparative period in 2023.


Source: Bank of Ghana

Chart 2: M2+ Growth and its Components (% Contributions)
Curr.
Dem. Dep
Sav and Time Dep.
FCDs
Total Liquidity (M2+)

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC


4.3 Deposit Money Banks Credit Developments
Total DMBs’ credit to the private sector and public institutions grew by 19.7 percent in August 2024, compared to a
growth of 9.6 percent recorded in August 2023. Credit to the private sector increased by 21.7 percent in August 2024,
compared to 10.7 percent growth recorded in the corresponding period of 2023. Private sector credit accounted for
100.50 percent of the flow in total outstanding credit in August 2024, relative to 100.34 percent recorded in the
corresponding period of 2023. The top five sectors with significant share of credit flows were: services (30.5%);
commerce and finance (25.6%); import trade (12.1%); manufacturing (10.9%); and construction (7.3%).

Total outstanding credit to the private sector at the end of August 2024 was GH¢80.32 billion, compared with GH¢66.0
billion recorded in August 2023. In real terms, credit to the private sector increased by 1.1 percent, relative to a
contraction of 21.0 percent recorded over the same comparative period last year. Growth in real private sector credit
remained above the long-run trend during the review month.


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

Source: Bank of Ghana

NDA
NFA
RM growth (y-on-y)
Figure 4.3b: BOG NDA and its Sources (% Contributions)

Source: Bank of Ghana

NCG
NC_DMBs
OMO Ster. A/c
OIN
NDA
Figure 4.4a: Shares in Annual Flow of Credit to the Private Sector (%)

Source: Bank of Ghana
Aug-23
Aug-24
Figure 4.4b: Annual Growth in Real Private Sector Credit (%)

Source: Bank of Ghana


Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
Sep-21
Mar-22
Sep-22
Mar-23
Sep-23
Mar-24
Sep-24
RGPSC
Trend

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC

4.4 Money Market Developments
On year-on-year basis, money market interest rates broadly trended downwards. The 91-day and 182-day Treasury bill
rates decreased to 24.85 percent and 26.76 percent, respectively, in August 2024, from 26.35 percent and 27.84 percent
in the corresponding period in 2023. The rate on the 364-day instrument declined to 27.90 percent in August 2024
from 30.88 percent in August 2023. Interest rates on longer-dated instruments, however, remained stable. Rates on
the 2-year, 3-year, 5-year, 6-year, 7-year, 10-year, 15-year, and 20-year bonds remained at 21.50 percent, 29.85
percent, 22.30 percent, 21.75 percent, 18.10 percent, 19.75 percent, 19.75 percent, and 20.20 percent, respectively, due
to the non-issuance of these instruments during the review period.

The Interbank Weighted Average Rate (IWAR) increased to 28.84 percent in August 2024, from 26.59 percent in
August 2023, underpinned by sustained liquidity withdrawal from the market. However, the average lending rates of
banks declined marginally to 30.79 percent in August 2024, from 31.78 percent in the corresponding period of 2023,
mainly reflecting the transmission of the declines in Treasury bill rates.


4.5 Stock Market Developments
The Ghana Stock Exchange Composite Index (GSE-CI) increased to 4,359.85 points in August 2024, from 3,084.79
points recorded in the corresponding period of 2023. This reflected a year-on-year gain of 41.3 percent, compared to
23.0 percent growth in August 2023. The performance of the GSE-CI was driven by improved demand for equities,
because of the shift in investor appetite following the closure of the bonds market and the significant recovery in the
profitability of listed financial institutions. The main sectors that contributed to the gains recorded were food and
beverages, manufacturing, distribution, finance, ETFund and agriculture.

The GSE-Financial Stocks Index (GSE-FI) closed at 2,118.06 points, reflecting a gain of 20.6 percent compared to a
loss of 15.6 percent over the same comparative period last year. The gain in the GSE-FSI was mainly on the back of
improved profitability of listed financial institutions.


Figure 4.5: MPR, Interbank and T-bill Rates (%)
Source: Bank of Ghana

Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
MPR
91-Day T-bill rate
Interbank rate
Inflation
Figure 4.6: Real Interest Rates (%)
Source: Bank of Ghana
-30.00
20.00
70.00
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Real MPR
Real 91 Day T-bill Rate
Real Interbank Rate
Real Lending Rate
Real Deposit Rate
Inflation
Figure 4.7: Yield Curve (%)

Source: Bank of Ghana

Aug-23
Aug-24

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Figure 4.8: GSE Composite Index

Source: Bank of Ghana


Figure 4.9: GSE Financial Stock Index

Source: Bank of Ghana


Total market capitalisation of the GSE at the end of August 2024 was GH¢92.04 billion, representing a year-on-year
growth of 25.7 percent, compared with a growth of 13.7 percent in August 2023. The increase in market capitalization
was mainly driven by appreciation in share prices in the food & beverages, manufacturing, distribution, finance,
mining, and IT sectors.

Table 4.1: Performance of Ghana Stock Exchange

Source: Ghana Stock Exchange and Bank of Ghana Staff Calculations

4.6 Conclusion
Developments in monetary aggregates for August 2024 pointed to a decline in the annual growth in broad money
supply (M2+) relative to the corresponding period of 2023. This was largely driven by a moderation in the pace of
growth in the NDA of depository institutions. Net Foreign Assets of the depository institutions increased significantly,
reflecting a net build-up in foreign assets. Interest rates broadly showed downward trends at the short-end of the
primary market, on year-on-year basis. The Ghana Stock Exchange Composite Index recorded significant year-onyear gains in August 2024, reflecting a shift in the demand for equities due to the adverse shocks to bond prices and
the closure of the bonds market on account of the DDEP. Investor appetite for stocks was also reinforced by the
significant improvement in the profitability of listed financial institutions.

Y-T-D
Aug-22
Dec-22
Mar-23
Jun-23
Aug-23
Sep-23
Dec-23
Mar-24
Jun-24
Jul-24
Aug-24

GSE CI

GSE FI

Market Capitalization

Changes
Y-O-Y

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
5. Banking Sector Developments

5.0 Highlights
The banking sector continued to record improved performance, with assets growing at 38.7 percent at end-August
2024, compared to a growth of 19.6 percent in August 2023. Both pre-tax and after-tax profits were higher in the first
eight months of 2024 relative to the same period last year. The Capital Adequacy Ratio (CAR) stood at 10.3 percent
in August 2024, higher than the 7.5 percent recorded in August 2023. With reliefs, CAR was 13.8 percent in August
2024, compared to 14.2 percent in August 2023. Liquidity and efficiency ratios also improved during the first eight
months of the year, highlighting that, broadly, key financial soundness indicators were improving. Despite these
improvements, the Non-Performing Loan (NPL) ratio was 24.3 percent in August 2024, up from 20.0 percent in August
2023.

5.1 Banks’ Balance Sheet
Total assets of the banking sector grew by 38.7 percent to GH¢339.3 billion as at August 2024, compared with 19.6
percent growth recorded in August 2023, driven by robust growth in deposits and other funding sources. Foreign assets
grew by 71.2 percent in August 2024, compared to 48.6 percent in August 2023, while domestic assets went up by
35.9 percent in August 2024, compared to 17.7 percent in August 2023. The share of foreign assets in total assets
increased to 9.7 percent from 7.8 percent, while the share of domestic assets declined to 90.3 percent from 92.2 percent,
during the reference period.

Banks’ investments grew by 20.2 percent to GH¢116.7 billion in August 2024, up from 19.9 percent growth recorded
in August 2023. Investments in long-term instruments shot up by 37.4 percent from a negative growth of 28.6 percent
recorded in August 2023, reflecting in part the reclassification of the restructured cocoa bills to bonds and exchange
rate effects. Investments in short-term bills increased by 3.7 percent in August 2024, compared to the growth of 242.6
percent recorded in the previous year. This resulted in the share of short-term bills falling to 15.1 percent in August
2024, from 20.2 percent in August 2023. The mixed developments in bills and securities culminated in a declined share
of investments in total assets of 34.4 percent in August 2024, from 39.7 percent in August 2023.

Credit growth continued to pick up within the banking sector. Gross loans and advances grew by 19.7 percent to
GH¢86.7 billion in August 2024, compared to 9.6 percent in August 2023. Growth in net loans and advances (gross
loans adjusted for provisions and interest in suspense) increased significantly, from 5.7 percent in August 2023 to 13.8
percent in August 2024.

Deposits of GH¢254.8 billion as at end-August 2024 remained the main source of funding for the banking sector.
However, growth in deposits moderated from 38.9 percent in August 2023 to 34.2 percent in August 2024. In cedi
terms, the foreign currency component of deposits grew by 33.9 percent to GH¢83.1 billion in August 2024, compared
to a growth of 48.6 percent a year ago, a signal that the overall growth in total deposits was partly driven by currency
depreciation.

Borrowings in August 2024 surged by 86.4 percent to GH¢25.8 billion, from a decline of 41.0 percent in August 2023,
driven largely by significant growth in domestic short-term borrowings as well as an increase in foreign short-term
borrowings. Long-term foreign borrowings grew by 9.9 percent in August 2024, from a contraction of 31.9 percent in
August 2023. Meanwhile, long-term domestic borrowings recorded a contraction of 30.5 percent, compared to the
previous year’s growth of 56.5 percent.


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
The industry’s shareholders’ funds (comprising paid-up capital and reserves) grew by 39.9 percent to GH¢33.4 billion
in August 2024, compared to a contraction of 10.3 percent in August 2023. The increase in shareholders’ funds was
due to capital injection by shareholders, as well as the ploughing back of profits.

Table 5.1: Key Developments in DMBs' Balance Sheet

Source: Bank of Ghana


5.1.1 Asset and Liability Structure
The asset structure of the industry’s balance sheet in August 2024 reflected banks’ preference for more liquid assets.
Cash and bank balances replaced investments as the largest component of total assets following the introduction of the
dynamic Cash Reserve Ratio (CRR). Accordingly, the share of cash and bank balances rose from 25.9 percent in
August 2023 to 35.6 percent at end-August 2024 as banks increased reserves in compliance with the new cash reserve
requirements. Investments (comprising bills, securities, and equity) was the second largest component of banks’ assets,
although its share in total assets declined to 34.4 percent in August 2024, from 39.7 percent in August 2023.
Investments, and cash and bank balances together accounted for 70.0 percent of total assets in August 2024, compared
to a share of 65.6 percent in August 2023. Notwithstanding the moderate pick-up in credit growth, net loans and
advances constituted the third-largest component of total assets, recording a share of 20.8 percent in August 2024,
down from 25.3 percent in August 2023. Non-earning assets (fixed assets and other assets) in banks’ total assets
increased marginally in share to 9.3 percent in August 2024 percent, from 9.2 percent during a similar period in 2023.

The funding structure of banks continued to be dominated by deposits. However, the share of deposits in banks’
liabilities and shareholders’ funds declined to 75.1 percent in August 2024, from 77.6 percent in the corresponding
period last year, following the moderation in growth. The share of borrowings rose to 7.6 percent in August 2024, from
Aug-23
Jun-24
Aug-24
Aug-23
Jun-24
Aug-24
Aug-23
Aug-24
TOTAL ASSETS
244,724.3

323,177.5

339,329.5

19.6

33.3

38.7

100.0

100.0

A. Foreign Assets
19,158.3

33,010.0

32,800.6

48.6

57.6

71.2

7.8

9.7

B. Domestic Assets
225,566.0

290,167.5

306,528.9

17.7

31.0

35.9

92.2

90.3

Investments
97,077.8

107,211.3

116,692.1

19.9

19.2

20.2

39.7

34.4

i. Bills
49,469.5

42,796.0

51,304.4

242.6

7.3

3.7

20.2

15.1

ii. Securities
47,348.1

64,078.7

65,051.1

(28.6)

28.6

37.4

19.3

19.2

Advances (Net)
61,883.1

69,104.7

70,450.3

5.7

10.3

13.8

25.3

20.8

of which Foreign Currency
20,910.1

24,333.5

23,566.9

11.8

10.4

12.7

8.5

6.9

Gross Advances
72,429.4

84,530.0

86,677.4

9.6

15.6

19.7

29.6

25.5

Other Assets
14,375.8

21,961.5

22,038.8

34.8

49.3

53.3

5.9

6.5

Fixed Assets
7,539.0

8,582.7

8,769.0

38.3

15.1

16.3

3.1

2.6

TOTAL LIABILITIES AND CAPITAL
244,724.3

323,177.5

339,329.5

19.6

33.3

38.7

100.0

100.0

Total Deposits
189,863.8

245,880.2

254,758.0

38.9

31.1

34.2

77.6

75.1

of which Foreign Currency
62,048.6

81,228.3

83,068.6

48.6

29.8

33.9

25.4

24.5

Total Borrowings
13,851.8

23,168.3

25,815.9

(41.0)

44.4

86.4

5.7

7.6

Foreign Liabilities
6,104.3

7,487.5

7,246.0

(55.0)

(0.8)

18.7

2.5

2.1

i. Short-term borrowings
1,362.2

2,490.6

2,165.2

(77.9)

33.2

58.9

0.6

0.6

ii. Long-term borrowings
3,854.7

4,015.1

4,234.5

(31.9)

(2.5)

9.9

1.6

1.2

iii. Deposits of non-residents
884.3

940.6

821.6

(48.7)

(39.1)

(7.1)

0.4

0.2

Domestic Liabilities
213,884.2

281,979.5

297,426.2

30.9

33.2

39.1

87.4

87.7

i. Short-term borrowing
6,551.3

15,230.3

17,967.7

(36.5)

83.0

174.3

2.7

5.3

ii. Long-term Borrowings
2,083.5

1,432.3

1,448.6

56.5

(17.6)

(30.5)

0.9

0.4

iii. Domestic Deposits
188,979.5

244,939.5

253,936.4

40.0

31.7

34.4

77.2

74.8

Other Liabilities
16,560.7

21,093.0

24,627.7

(6.9)

32.6

48.7

6.8

7.3

Paid-up capital
10,432.1

13,023.9

13,769.8

1.6

24.8

32.0

4.3

4.1

Shareholders' Funds
23,878.4

32,307.2

33,399.8

(10.3)

44.9

39.9

9.8

9.8

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

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
5.7 percent in August 2023, in line with the observed strong growth in total borrowings. The share of shareholders’
funds in banks’ liabilities and shareholders’ funds, on the other hand, remained stable at 9.8 percent while the share of
other liabilities increased to 7.5 percent in August 2024, from 7.0 percent over the same comparative period last year.

5.1.2 Share of Banks’ Investments
Long-term securities constituted the largest component of banks’ investment portfolio, increasing from 48.8 percent
in August 2023 to 55.7 percent in August 2024. Bills (short-term debt instruments) was the second largest component
of banks’ investment portfolio. Its share, however, dropped from 51.0 percent in August 2023 to 44.0 percent in August
2024, in line with the moderation in growth recorded during the reference period. The share of equity investments
remained negligible at 0.3 percent during the period under review.

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

Source: Bank of Ghana Staff Calculations


5.2 Credit Risk
The industry’s asset quality deteriorated in August 2024 relative to the same period in August 2023. The elevated
credit risk was broad-based with increases in non-performing loan (NPL) ratios in all economic sectors except for the
mining and quarrying sector.


Aug-22
Aug-23
Jun-24
Aug-24
Components of Banks' Investments (% share)
Bills
Securities
Shares & Other Equities


Aug-22
Aug-23
Jun-24
Aug-24
Asset Structure of Banks (%)
Cash and Due from Banks
Investments
Net Advances
Others


Aug-22
Aug-23
Jun-24
Aug-24
Liability Structure of Banks (%)
Total Deposits
Total Borrowings
Shareholders' Funds
Other Liabilities


Components of Banks' Credit Portfolio (%)
Private sector
Public sector

Agric, Forest. & Fishing
Mining & Quarrying
Manufacturing
Construction
Elect., Water & Gas
Commerce and Finance
Transp., Stor. & Commu.
Services
Miscellaneous
Distribution of Credit by Sector (%)
Aug-24
Aug-23

Agric, Forest. & Fishing
Mining & Quarrying
Manufacturing
Construction
Elect., Water & Gas
Commerce and...
Transp., Stor. &...
Services
Miscellaneous

NPL ratio in each Sector (%)
Aug-24
Aug-23

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
5.2.1 Credit Portfolio Analysis
The pick-up in credit growth recorded in August 2024 was driven by an increase in credit to the private sector. The
stock of gross loans and advances increased by 19.7 percent in August 2024 to GH¢86.7 billion, compared to an annual
growth of 9.6 percent in August 2023. Private sector credit (comprising credit to private enterprises and households)
also went up by 21.7 percent to GH¢80.3 billion in August 2024, compared to 10.6 percent recorded in the previous
year. Public sector credit, however, posted a contraction of 1.1 percent to GH¢6.4 billion at end-August 2024,
compared to a contraction of 0.3 percent in August 2023. Consequently, the share of private sector credit in total credit
inched up to 92.7 percent in August 2024, from 91.1 percent in August 2023, while that of public sector credit declined
to 7.3 percent, from 8.9 percent over the same period a year earlier.

In terms of the sectoral distribution of credit, the services sector accounted for the largest share of 33.0 percent as at
end-August 2024 (from 34.1 percent in August 2023), followed by the commerce and finance sectors with a share of
23.8 percent (from 20.9 percent in August 2023), while the manufacturing sector maintained its share of 10.7 percent.
Together, these sectors accounted for 67.5 percent of total credit (compared with 65.7 percent in August 2023). The
mining and quarrying sector was the lowest recipient of industry credit with a share of 3.2 percent (down marginally
from 3.5 percent in August 2023).

5.2.2 Off-Balance Sheet Transactions
Off-balance sheet transactions (largely trade finance and guarantees) increased during the review period. Contingent
liabilities grew by 50.2 percent to GH¢27.1 billion as at end-August 2024, from GH¢18.0 billion as at end-August
2023. Accordingly, banks’ contingent liabilities as a percentage of total liabilities increased from 8.2 percent in August
2023 to 8.9 percent in August 2024.

5.2.3 Asset Quality
The banking industry’s asset quality declined during the period under review. The industry’s NPL ratio rose to 24.3
percent in August 2024, from 20.0 percent in August 2023. When adjusted for the fully provisioned loan loss category,
the industry’s NPL ratio also increased from 9.0 percent in August 2023 to 10.6 percent in August 2024, reflecting
increasing shares of both sub-standard and loss loans in the NPL stock. The rise in the NPL ratio was attributable to
the higher growth in the NPL stock (45.2% year-on-year growth) relative to the growth in total loans (19.7% year-onyear growth). The industry’s NPL stock increased by 45.2 percent to GH¢21.1 billion in August 2024, from GH¢14.5
billion in August 2023, reflecting a deterioration in both domestic and foreign currency-denominated loans.

The private sector was the largest recipient of the industry’s credit and accounted for the largest share of NPLs as at
end-August 2024. The proportion of NPLs attributable to the private sector increased marginally from 95.0 percent in
August 2023 to 96.0 percent in August 2024, while that of the public sector declined from 5.0 percent in August 2024
to 4.0 at end-August 2024.

The mining and quarrying sector recorded an NPL ratio of 13.0 percent in August 2024, which was the lowest among
the economic sectors. This figure was down from 15.4 percent in August 2023, the only instance of an improvement
in NPL ratio between August 2023 and August 2024 among the sectors. The agriculture, forestry and fishing sector
maintained its position as the sector with the highest NPL ratio of 56.2 percent (from 40.7 percent in August 2023). It
was followed closely by the transportation, storage, and communication sector with an NPL ratio of 52.3 percent (from
25.2 percent). The construction sector dropped to third place with an NPL ratio of 35.3 percent (from 34.3 percent).
This was followed by the commerce and finance sector with an NPL ratio of 23.3 percent (from 23.1 percent) and then
the services sector at 18.6 percent (from 17.6 percent). The manufacturing and electricity, water and gas sectors had
NPL ratios of 17.5 percent and 17.4 percent, respectively, (from 14.1 percent and 8.7 percent).

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC

5.3 Financial Soundness Indicators
Trends in the industry’s Financial Soundness Indicators (FSIs) were mixed during the period under review.

Figure 5.2: Key Financial Soundness Indicators

Source: Bank of Ghana Staff Calculations


5.3.1 Liquidity Indicators
The industry’s liquidity position remained strong in August 2024, with improvements in both core and broad measures
following the increase in the cash reserve requirement. The ratio of core liquid assets (mainly cash and due from banks)
to total deposits increased from 33.4 percent in August 2023 to 47.4 percent in August 2024, while the ratio of core
liquid assets to total assets increased from 25.9 percent to 35.6 percent. The ratio of broad liquid assets to total deposits
also increased from 84.4 percent to 93.1 percent, while the ratio of broad liquid assets to total assets ratio increased
from 65.5 percent to 69.9 percent over the review period.

5.3.2 Capital Adequacy Ratio
The industry’s solvency position, measured by the Capital Adequacy Ratio (CAR), stood at 10.2 percent in August
2024, higher than the 7.5 percent recorded in August 2023. This development was on account of the rebound in
profitability following the DDEP implementation, as well as the ongoing recapitalisation of the sector. With reliefs,
CAR was 13.8 percent in August 2024, compared to 14.2 percent in August 2023.

5.3.3 Profitability
The banking industry remained profitable for the first eight months of 2024, recording a growth of 19.4 percent (to
GH¢10.3 billion) in profit-before-tax (PBT), and a growth of 17.6 percent (to GH¢6.7 billion) in profit-after-tax (PAT).

Aug-22
Aug-23
Jun-24
Aug-24
Efficiency Indicators (%)
Cost to income
Operational Cost to gross income
Cost to total assets (RHS)
Operational Cost to total assets (RHS)

Aug-22
Aug-23
Jun-24
Aug-24
Profitability (%)
Return On Equity (%) after tax
Return On Assets (%) before tax

Aug-21
Aug-22
Aug-23
Jun-24
Aug-24
Asset Quality
LOSS (GH¢m)
DOUBTFUL (GH¢m)
SUB-STD (GH¢m)
Adjusted NPL Ratio (%)
NPL Ratio (% Right Axis)

Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Solvency (%)
RWA/Total Assets
CAR (with Reliefs)
CAR (w/o Reliefs)

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
This was relative to GH¢8.6 billion in PBT and GH¢5.7 billion in PAT recorded in August 2023, both of which were
moderations in growth.

Largely, all income lines grew, but at a slower pace, in August 2024 compared to the same period last year. Net interest
income picked up by 16.9 percent to GH¢15.8 billion, lower than the corresponding growth of 37.9 percent in 2023.
On year-on-year terms, interest income improved by 18.7 percent to GH¢24.1 billion, up from GH¢20.3 billion in
August 2023. Interest expenses also increased to GH¢8.4 billion, up from GH¢6.9 billion in August 2023, representing
a growth rate of 22.1 percent relative to the 37.5 percent growth recorded in August 2023. The slowdown in growth in
net interest income was attributable to the lower rates on lending and money market instruments in August 2024
compared to August 2023.

Figure 5.3: Composition of Income, Cost and Borrowings

Source: Bank of Ghana Staff Calculation

Net fees and commissions recorded a slower growth of 22.9 percent, from 27.3 percent a year ago, while “other
income” contracted by 2.9 percent to GH¢3.3 million, from GH¢3.4 billion (64.6% growth) during the same review
period. These developments resulted in a 10.9 percent growth in the industry’s net operating income, compared with
the 39.9 percent growth recorded in August 2023.

The cost lines also recorded similar increases but at lower growth rates compared to the same period in 2023. The
industry’s operating expenses grew by 18.9 percent in August 2024, compared to 40.1 percent in 2023, on the back of
lower growth in staff costs and other operating (administrative) expenses. Provisions for depreciation, bad debt and
impairment losses on financial assets, however, contracted by 19.2 percent, compared to 34.4 percent increase recorded
in August 2023 on account the domestic debt restructuring.


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


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


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


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

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
(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 the slowdown in growth of PBT and PAT. The ROE declined from 36.9
percent to 31.4 percent in August 2024, while the ROA moderated to 4.9 percent from 5.4 percent over the same
comparative period.

(b) Interest Margin and Spread
Interest spreads for the banking sector widened to 8.3 percent in August 2024, from 8.1 percent in August 2023. The
increase in spreads was on the back of a decline in interest payable to 3.9 percent, from 4.1 percent a year earlier, while
gross yields remained unchanged during the reference period. The interest margin to total assets ratio also fell to 4.6
percent from 5.5 percent, while interest margin to gross income increased marginally to 50.8 percent from 50.5 percent
during the period under review. The ratio of gross income to total assets (asset utilisation) declined to 9.1 percent from
10.9 percent in August 2023, while the profitability ratio increased marginally to 21.5 percent from 21.3 percent over
the review period.

(c) Composition of Banks’ Income
Income from investments remained the largest component of banks’ total income, with its share growing to 41.6
percent from 40.8 percent in August 2023. The share of interest income from loans also rose to 36.2 percent from 35.5
percent, in line with the increase in gross advances during the year. The share of banks’ income from fees and
commissions, similarly, increased to 11.8 percent from 11.2 percent, while the share of income from other sources
declined to 10.5 percent from 12.6 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 improved to 78.5 percent from 78.7 percent in August 2023, while cost-tototal assets ratio improved to 7.2 percent from 8.6 percent. The operational cost-to-total assets ratio also went down to
4.7 percent from 5.8 percent while the ratio of operational cost to total income improved to 51.6 percent in August
2024 from 53.0 percent.

5.3.5 Banks’ Counterparty Relationships
Total offshore balances grew by 88.6 percent to GH¢29.3 billion in August 2024, compared to the 39.7 percent growth
recorded in the previous year, driven largely by growth in nostro balances and placements. Nostro balances grew by
99.6 percent, compared with a growth of 12.9 percent in August 2023. Growth in industry placements was also higher
at 81.5 percent, compared to the growth of 67.1 percent during the same period last year. Accordingly, the ratio of
offshore balances to net worth increased to 87.6 percent, from 65.0 percent in August 2023.

The share of banks’ external borrowings in total borrowings declined to 24.8 percent from 37.7 percent in August
2023, while the share of domestic borrowings increased to 75.2 percent from 62.3 percent over the same period. Banks’
external borrowings were directed towards long-term instruments, although the share of long-term borrowings in total
external borrowings declined to 66.2 percent in August 2024 from 73.9 percent in August 2023, while the share of
short-term borrowings increased to 33.8 percent from 26.1 percent over the same period.

5.4 Credit Conditions Survey
Results of the August 2024 Credit Conditions Survey indicated a net easing in the overall stance on loans to enterprises
between July and August 2024, on the back of a net easing in the stance on loans to large enterprises. Banks projected

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
that their overall stance on enterprise loans would tighten in the next two months, from net tightening in all components
of enterprise loans.

The overall stance on loans to households also eased marginally during the August 2024 survey round from a net ease
in the stance on consumer credit whereas the stance on loans for house purchases tightened in August 2024. Over the
next two months, banks projected a further net easing in the overall stance on loans to households, which would be
reflected in loans for house purchases and consumer credit.

The August 2024 survey further indicated an increase in overall demand for enterprise loans from net increases in all
components of enterprise loans except long-term loans. Banks projected that demand for corporate loans would
continue to increase in the next two months, driven by net increases in the demand for all categories of enterprise loans.
Credit demand by households, on the other hand, softened between July and August 2024, from a net decrease in the
demand for mortgages and consumer credit and other lending. Over the next two months, however, banks projected a
pickup in the demand for consumer credit 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 August 2024 pointed to continuing recovery from the macroeconomic challenges
since the 2022 crisis. The Capital Adequacy Ratio adjusted for regulatory reliefs was above the required minimum as
at end-August 2024, reflecting the rebound in profitability following the Domestic Debt Exchange Programme
-10

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
-5

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


Overall Demand for credit
Small and Medium Enterprises
Large Enterprises
Short term
Long term
Index, a rise denotes increase in demand
Corporates


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

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
implementation, as well as the ongoing recapitalisation of the sector. The banking sector was also profitable, with
improvements in liquidity and efficiency during the review period. Asset quality concerns, however, remained a strain
on the performance of the sector. The industry’s outlook remains stable, contingent on the recapitalisation of the sector
by the 2025 deadline and enforcement of stringent credit underwriting standards, and intensification of loan recovery
efforts to address asset quality concerns in the sector.


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC

6. Fiscal Developments

6.0 Highlights
Provisional data on budget execution from January to July 2024 indicated an overall fiscal deficit (commitment basis)
of 2.4 percent of GDP, against the budget target of 2.8 percent of GDP. The deficit of GH¢24.8 billion was financed
from domestic (GH¢ 24.2 billion) and foreign (GH¢17.4 billion) sources. The primary balance for the period was a
deficit of GH¢3.8 billion (0.4% of GDP), against a primary deficit target of GH¢3.5 billion (0.3% of GDP)

6.1 Total Revenue and Grants
Total revenue and grants as of July 2024 was GH¢89.35 billion (8.8% of GDP), slightly higher than the target of
GH¢88.74 billion (8.7 % of GDP). The outturn represented an excess of 0.7 percent over the target and a year-on-year
growth of 27.5 percent. Domestic revenue totalled GH¢88.90 billion (8.7% of GDP), marginally above the target of
GH¢86.86 billion (8.5% 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¢72.20 billion (7.1% of GDP), higher than the target of GH¢69.62
billion (6.8% of GDP).

Taxes on income and property (made up of personal income tax, company taxes, royalties from oil and minerals, and
other direct taxes) totalled GH¢35.15 billion (3.4% of GDP), 13.1 percent above the target of GH¢31.07 billion (3.0%
of GDP). All the components exceeded their targets except personal taxes and company taxes on oil. The total
collections from this tax handle was also higher than the GH¢27.56 billion collected in the corresponding period of
2023, reflecting a year-on-year growth of 27.5 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) totalled GH¢31.10 billion (3.0% of GDP), falling by 9.1
percent below the target of GH¢34.18 billion. On year-on-year basis, the outturn represented a growth of 26.7 percent.

Non-tax revenue raked in GH¢13.12 billion, slightly lower than the target of GH¢13.13 billion and represented a yearon-year growth of 35.7 percent.

Taxes on international trade (comprising mainly import duties) was GH¢10.21 billion, above the target of GH¢9.21
billion by 10.8 percent. This tax handle also recorded a year-on-year growth of 38.3 percent.

“Other revenue” of GH¢2.92 billion failed to meet its target of GH¢3.58 billion, recording a negative deviation of 18.4
percent. However, this outturn was above the total of GH¢2.86 billion collected in the corresponding period of 2023,
reflecting a year-on-year increase of 2.0 percent.

Grants received over the review period totalled GH¢457.3 million, significantly below GH¢1.88 billion programmed
for the review period, thus falling below its target by 75.7 percent. The outturn was also lower than GH¢1.03 billion
received in the corresponding period of 2023.


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table 6.1: Total Revenue and Grants

Source: Ministry of Finance

6.2 Total Expenditures
Total expenditures (including arrears clearance and discrepancy) for the review period totalled GH¢116.66 billion
(11.4% of GDP). This was below the target of GH¢117.45 billion (11.5% of GDP). It also represented a 41.2 percent
year-on-year growth.

Compensation of employees (including wages and salaries, pensions & gratuities, and other wage related expenditure)
was GH¢35.24 billion, marginally higher than the target of GH¢35.19 billion, and a year-on-year growth of 25.7
percent. In terms of fiscal flexibility, compensation of employees constituted 39.6 percent of domestic revenue
mobilized during the period under review.

Use of goods and services totalled GH¢7.96 billion, higher than the expected target of GH¢4.67 billion, an overrun of
70.5 percent. This expense was also higher than the GH¢7.43 billion recorded in the corresponding period of 2023,
reflecting a year-on-year expansion of 7.1 percent.

Total interest payments of GH¢20.97 billion fell below the programmed target of GH¢25.19 billion. This compares
with GH¢15.91 billion recorded in the corresponding period of 2023. The fall in interest payments was mainly on
account of a partial freeze on external debt service.

Grants to other government units (made up of National Health Fund, Education Trust Fund, Road Fund, Energy Fund,
District Assemblies Common Fund, Retention of IGFs, transfer to GNPC, Ghana Infrastructure Fund and other
earmarked funds) was GH¢22.67 billion, higher than the expected target of GH¢20.71 billion, resulting in an overrun
of 9.3 percent. It also recorded a year-on-year growth of 42.3 percent.

Million Ghana Cedis

JAN-JUL
Q1+Q2
JAN-JUL
JAN-JUL
DEYIATION
Y-O-Y
OUTTURN OUTTURN
OUTTURN
PROG
OYER(+)/ BELOW(-
GROWTH
TAX REVENUE
55,981.9

59,696.6

72,159.50

69,619.0

3.6

28.9

TAXES ON INCOME & PROPERTY
27,563.2

28,676.0

35,152.23

31,069.0

13.1

27.5

Personal
9,653.6

9,418.3

12,174.03

12,240.1

(0.5)

26.1

Companies
11,348.6

12,152.2

14,248.56

11,356.4

25.5

25.6

Company Taxes on Oil
1,833.5

1,821.9

1,821.88

2,564.8

(29.0)

(0.6)

Others
4,727.4

5,283.6

6,907.76

4,907.7

40.8

46.1

TAXES ON DOMESTIC GOODS AND SERYICES
24,529.0

25,966.6

31,066.8

34,175.7

(9.1)

26.7

Excises
3,189.8

3,250.8

3,813.9

5,112.7

(25.4)

19.6

VAT
13,330.5

14,312.2

17,065.2

17,596.2

(3.0)

28.0

National Health Insurance Levy (NHIL)
2,960.4

3,066.4

3,685.5

3,982.9

(7.5)

24.5

GETFund Levy
2,961.2

3,066.5

3,685.6

3,983.9

(7.5)

24.5

Communication Service Tax
375.4

367.3

465.3

692.4

(32.8)

24.0

E-Transaction Levy
537.0

810.5

1,006.2

1,128.8

(10.9)

87.4

Covid-19 Health Levy
1,174.6

1,092.8

1,345.2

1,678.8

(19.9)

14.5

TAXES ON INTERNATIONAL TRADE
7,381.3

8,386.2

10,206.1

9,211.6

10.8

38.3

Imports Duty
7,381.3

8,386.2

10,206.1

9,211.6

TAX REFUND
(3,491.6)

(3,332.2)

(4,265.7)

(4,837.3)

(11.8)

22.2

SOCIAL CONTRIBUTIONS
565.0

692.6

692.6

536.7

29.1

22.6

NON-TAX REVENUE
9,674.3

11,265.1

13,124.3

13,127.4

(0.0)

35.7

OTHER REVENUE
2,861.8

2,539.5

2,919.5

3,579.8

(18.4)

2.0

DOMESTIC REVENUE
69,083.0

74,193.7

88,895.9

86,862.9

2.3

28.7

GRANTS
1,025.1

457.3

457.3

1,879.7

(75.7)

(55.4)

Project Grants
1,025.1

457.3

457.3

1,153.4

Programme Grants


TOTAL REVENUE & GRANTS
70,108.1

74,651.0

89,353.2

88,742.62

0.69

27.5


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Capital expenditure was GH¢16.02 billion (1.6% of GDP), lower than the programmed target of GH¢20.27 billion
(2.0% of GDP). This outturn represented a year-on-year growth of 67.5 percent.

“Other expenditure” for the first seven months of 2024 was GH¢13.29 billion, 24.4 percent above the target of
GH¢10.68 billion. Out of this, energy sector payment shortfalls totalled GH¢10.60 billion (1.0% of GDP), higher than
the programmed target of GH¢4.76 billion (0.5% of GDP). The outturn of GH¢13.29 billion dwarfs the GH¢ 5.52
billion recorded in the corresponding period of 2023.

Table 6.2: Total Expenditures

Source: Ministry of Finance


6.3 Budget Balance and Financing
Government budgetary operations resulted in an overall budget deficit of GH¢24.78 billion (2.4% of GDP) on
commitment basis for the period of Jan-July 2024. This was lower than the targeted deficit of GH¢28.71 billion (2.8%
of GDP). In addition, the primary balance recorded a deficit of 0.4 percent of GDP, against a target of 0.3 percent of
GDP. On cash basis, the overall budget deficit was GH¢39.62 billion (3.9% of GDP) compared to the target of
GH¢35.79 billion (3.5% of GDP). The primary deficit on cash basis was GH¢18.65 billion (1.8% of GDP) compared
to GH¢10.61 billion (1.0% of GDP).

The overall balance of GH¢24.78 billion was financed largely from domestic sources. Domestic financing (net) was
GH¢24.23 billion (2.4% of GDP), higher than GH¢19.63 billion (2.3% of GDP) recorded in the same period in 2023.
Foreign financing recorded a net inflow of GH¢17.41 billion (1.7% of GDP), higher than the programmed target of
GH¢14.62 billion (1.4% of GDP).


Million Ghana Cedis

JAN-JUL
Q1+Q2
JAN-JUL
JAN-JUL
DEYIATION
Y-O-Y
OUTTURN
OUTTURN OUTTURN
YROG
OYER(+)/ BELOW(-)
GROWTH
Compensation of Employees
28,031.9

29,298.2

35,237.4

35,193.4

0.1

25.7

Wages & Salaries
24,906.5

26,278.3

31,345.9

31,885.4

(1.7)

25.9

Social Contributions
3,125.4

3,019.9

3,891.4

3,308.0

17.6

24.5

Use of Goods and Services
7,432.0

5,773.9

7,961.6

4,669.5

70.5

7.1

Interest Payment
15,909.2

19,028.5

20,969.8

25,186.2

(16.7)

31.8

Domestic
14,674.0

18,463.1

20,326.2

20,662.2

(1.6)

38.5

External (Due)
1,235.3

565.4

643.6

4,524.0

(85.8)

(47.9)

Subsidies


Grants to Other Government Un
15,933.7

19,698.3

22,669.7

20,741.9

9.3

42.3

Social Benefits
221.7

376.8

376.8

535.0

(29.6)

70.0

Other Expenditure
5,517.4

12,976.9

13,287.5

10,679.4

24.4

140.8

o/w Energy Sector Payment Sh
3,043.1

10,600.6

10,600.6

4,761.7

122.6

248.3

Capital Expenditure
9,559.6

13,914.8

16,016.7

20,270.4

(21.0)

67.5

Domestic financed
2,699.4

7,450.3

8,275.9

11,152.9

(25.8)

206.6

Foreign financed
6,860.2

6,464.4

7,740.9

9,117.5

(15.1)

12.8

TOTAL EXPENDITURE
82,605.4

101,212.7

116,664.8

117,449.5

(0.7)

41.2


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table 6.3: Budget Balance and Financing

Source: Ministry of Finance


Million Ghana Cedis

JAN-JUL
Q1+Q2
JAN-JUL
JAN-JUL
DEYIATION
Y-O-Y
OUTTURN OUTTURN
OUTTURN
PROG
OYER(+)/ BELOW(-)
GROWTH
Revenue & Grants
70,108.1

74,651.0

89,353.2

88,742.6

0.69

27.5

Expenditure
82,605.4

101,212.7

116,664.8

117,449.5

(0.7)

41.2

Overall balance (commitment)
(23,806.5)

(26,561.8)

(24,776.1)

(28,706.9)

(13.7)

4.1

(percent of GDP)
(2.8)

(2.6)

(2.4)

(2.8)

Payables/Arrears Clearance (Net)
328.1

(14,848.0)

(14,848.0)

(7,087.8)

109.5

(4,625.3)

o/w Clearance of Arrears
(8,142.3)

(19,383.5)

(19,383.5)

(7,087.8)

173.5

138.1

o/w Payables build-up
8,470.4

4535.5
4535.5
0.0
o/w Outstanding payables build-up repo
8,470.4

4535.5
4535.5
0.0
Overall balance (cash)
(12,169.3)

(41,409.8)

(39,624.1)

(35,794.7)

10.7

225.6

(percent of GDP)
(1.4)

(4.1)

-3.9
-3.5
Discrepancy
(11,309.1)

5,278.1

2,535.6

2,535.6

(122.4)

Overall balance (incl. Divestiture and Discrep
(23,478.4)

(41,409.8)

(42,159.7)

(35,794.7)

17.8
79.6

(percent of GDP)
(2.8)

(4.1)

-4.1
-3.5
Financing
23,478.4

36,131.7

39,624.1

35,794.7

10.7

68.8

Foreign (net)
3,992.9

16,424.4

17,407.6

14,618.5

19.1

336.0

Borrowing
7,335.1

17,503.4

18,779.8

16,624.1

13.0

156.0

Project loans
5,835.1

6,007.2

7,283.6

7,964.1

(8.5)

24.8

Programme Loans
1500.0
11,496.2

11,496.2

8,660.0

32.8

666.4

Sovereign Bond

Amortisation (due)
(3,342.2)

(1,078.9)

(1,372.2)

(2,005.6)

(31.6)

(58.9)

Domestic (net)
19,629.7

21,603.3

24,232.8

21,953.8

10.4

23.4

Banking
10,073.6

(3,146.8)

(2,259.0)

28,518.2

(107.9)

(122.4)

Bank of Ghana
3,016.6

(4,075.0)

(3,187.2)

0.0
(205.7)

o/w SDR

Comm. Banks
7,057.1

928.2

928.2

28,518.2

(96.7)

(86.8)

Non-banks
4,883.9

24,750.1

0.0
0.0
(100.0)

Other Domestic
4,672.2

0.0
26,491.8

11,958.3

o/w Buffer for Auction Shortfalls
-

0.0
0.0
0.0
o/w Domestic Standard Loan

Ghana Petroleum Funds
(521.9)

(814.1)

(934.3)

(630.5)

48.2

79.0

Transfer to Ghana Petroleum Funds
(1,481.3)

(1,336.7)

(1,737.6)

(2,101.7)

(17.3)

17.3

o/w Stabilisation Fund
(1,036.9)

(935.7)

(1,216.3)

(1,471.2)

(17.3)

17.3

o/w Heritage Fund
(444.4)

(401.0)

(521.3)

(630.5)

(17.3)

17.3

Transfer from Stabilisation Fund
959.5
522.6
803.3

1,471.2

(45.4)

(16.3)

Sinking Fund
377.6
(1,082.0)

(1,082.0)

(147.1)

635.4

(386.5)

Contingency Fund

Nominal GDP (Including Oil)
841,632.9

1,020,179.9

1,020,179.9

1,020,179.9

Nominal GDP (Excluding oil)
803,900.9

904,452.9

904,452.9

904,452.9


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
6.4 Public Debt Analysis
The stock of public debt at the end of July 2024 stood at GH¢761.3 billion, showing an increase of GH¢152.7 billion
over the end-December 2023 stock of GH¢608.58 billion. This was largely due to net exchange rate effect and the
depreciation of the Ghanaian cedi.

Table 6.4: Public Debt

Source: Bank of Ghana, Ministry of Finance

6.5 Conclusion
Budget execution for the period January to July 2024 showed a revenue outturn that was slightly above target and a
total expenditure that was marginally below target. The revenue overperformance was largely on account of higherthan-programmed receipts from tax revenue for the period. The expenditure performance on the other hand was partly
attributed to reduced spending on debt servicing, and lower-than-programmed capital expenditures. These
developments resulted in an overall budget deficit (commitment) which was below the target, and mainly financed
from domestic sources.

Jul 2024 -Dec

DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
CHANGE
TOTAL DOMESTIC DEBT (GH¢m)

SHORT TERM

MEDIUM-TERM

LONG-TERM

STANDARD LOANS

HOLDINGS OF DOMESTIC DEBT (GH¢m)

BANKING SYSTEM

NON-BANK

FOREIGN SECTOR (Non-Resident)

TOTAL EXTERNAL(US$m)

MULTILATERAL

BILATERAL

COMMERCIAL

TOTAL EXTERNAL(GH¢m)

TOTAL PUBLIC DEBT (GH¢m)

EXCHANGE RATE (End Period Selling MOF)

MEMORANDUM ITEMS
NOMINAL GDP ( GH¢m)

TOTAL DEBT /GDP RATIO (%)

EXTERNAL DEBT/GDP

DOMESTIC DEBT/GDP

EXTERNAL DEBT/TOTAL DEBT

DOMESTIC DEBT/TOTAL DEBT


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
7. Price Developments

7.0 Highlights
Domestic price developments since the last Monetary Policy Committee (MPC) meeting indicate a disinflation process
that remains on track. This was largely supported by the still tight monetary policy stance and easing food inflation.
Headline inflation has declined consistently since the last MPC to 20.4 percent in August, from 22.8 percent in June,
and 20.9 percent in July 2024, driven mainly by food inflation. The Bank’s main core measure of inflation, which
isolates prices of energy and utility items from the consumer basket, eased to 19.4 percent in August 2024 from 22.1
percent in June.

7.1 Domestic Inflation
Domestic price developments indicate that the disinflation process remains on track. Headline inflation decreased to
20.4 percent in August 2024, down from 22.8 percent in June 2024 and 25.8 percent in March. The August outturn
marked a continuous decline in headline inflation over the past five-months.

The decline in headline inflation observed for the month of August was primarily on the back of food inflation. Food
inflation declined to 19.1 percent in August, down from 24.0 percent in June and 29.6 percent in March. In contrast,
non-food inflation was stickier, dropping marginally to 21.5 percent in August, from 21.6 percent in June and 22.6
percent in March.

In line with headline inflation, underlying inflationary pressures, as proxied by the Bank’s core measure of inflation,
have also broadly eased. Core inflation, which isolates prices of energy and utility items from the consumer basket,
eased to 19.4 percent in August 2024, from 22.1 percent in June, and 26.3 percent in March 2024.

Figure 7.1: Headline Inflation

Source: GSS and Bank of Ghana Staff Calculations

Figure 7.2: Headline vs Core Inflation (%)

Source: GSS and Bank of Ghana Staff Calculations

Aug-21
Nov-21
Feb-22
May-22
Aug-22
Nov-22
Feb-23
May-23
Aug-23
Nov-23
Feb-24
May-24
Aug-24
Headline
Lower Band
Upper Band

Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Core 1 (Excluding
Fuel, and Utilities)
Headline Inflation

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
On month-on-month basis, headline inflation also fell to -0.7 percent in August 2024, down from 2.9 percent in June
2024 and 0.8 percent in March 2024. The decline in headline inflation was primarily driven by food inflation which
fell to -2.2 percent in August 2024, lower than the 5.1 percent recorded in June 2024, and 1.0 percent recorded in
March 2024. Monthly non-food inflation, in contrast was stickier, as it recorded 0.7 percent in August, 0.9 percent in
June and 0.7 percent in March.

Figure 7.3 Month-on-Month Inflation (%)

Source: GSS and Bank of Ghana Staff Calculations

Inflation for locally imported items also decreased in August 2024 to 22.2 percent, down from 25.1 percent and the
26.7 percent recorded in June and March respectively. Similarly, inflation for imported items, decreased to 16.1 percent
in August, from 17.5 percent in June and 23.8 percent in March 2024.

Figure 7.4 Inflation for Locally Produced and Imported Items (%)

Source: GSS and Bank of Ghana Staff Calculations

An analysis of inflation by sub-groups showed broad declines across the non-food CPI components. Specifically, from
June 2024 to August 2024, inflation declined for the following sub-groups: Alcoholic beverages, tobacco & narcotics
(25% in August vs 32.3% in June 2024), clothing & footwear (17.9% vs 18.2%), furnishings & household equipment
(12.6% vs 17.0%), health (20.6% vs 22.6%), recreation & culture (19.6 vs 20.5%), hotels, cafes & restaurants (29.5%
vs 30.7%), and personal care & miscellaneous goods (14.9% vs 19.5%).


Headline
Food
Non-food
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24

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
Locally produced Items
Imported Items

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table 7.1 CPI Components

Source: GSS and Bank of Ghana Staff Calculations

7.2 Inflation Risk Assessment and Outlook
Since the first quarter of 2024, headline inflation has declined for five consecutive months by 5.4 percentage points.
Core inflation has also dropped sharply over the same comparative period by 6.9 percentage points, an indication that
the disinflation process is set to continue, anchored on a tight monetary policy stance and improved exchange rate
stability. The latest forecasts show that inflation will continue to ease towards the target range of 13-17 percent for the
year and steadily decline towards the medium-term target of 8±2 percent by the end of 2025, barring unanticipated
shocks. Risks such as shocks to crude oil prices from rising geopolitical tensions, upward utility tariff adjustments and
food supply bottlenecks will need to be monitored closely. These risks are expected to be moderated by tight monetary
conditions, improved reserve buffers and tight liquidity management.

Decision on the Monetary Policy Rate
Given the assessment of the various sectors of the economy and the implication for the inflation outlook, the Monetary
Policy Committee decided to lower the Monetary Policy Rate by 200 basis points to 27.0 percent.


Weghts
Dec
Dec
Dec
Mar
Jun
Aug
Sept
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
(%)
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


CPI Components (%)
Source: Ghana Statistical Service

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
APPENDIX

Table A1: Sources of Growth in Total Liquidity (GH¢ Millions, unless otherwise stated)

Source: Bank of Ghana Staff Calculations

Table A2: Sources of Growth in Reserve Money (GH¢ Millions, unless otherwise stated)

Source: Bank of Ghana Staff Calculations

Appendix 1: Sources of Growth in Total Liquidity (M2+) (millions of Ghana cedis unless otherwise stated)
Aug-22
Dec-22
Aug-23
Dec-23
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
1 Net Foreign Assets

Bank of Ghana

Commercial Banks

2 Net Domestic Assets

3 ow: Claims on government (net)

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

BOG OMO Sterilisation Acc.

5 Total Liquidity (M2+)

6 ow: Broad Money Supply (M2)

7 ow: Foreign Currency Deposits(¢million)

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

9 Net Domestic Assets

10 ow: Claims on government (net)

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

12 ow: BOG OMO Sterilisation Acc.

12 Total Liquidity (M2+)

13 Broad Money Supply (M2)

14 Foreign Currency Deposits (FCDs)

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

16 Net Domestic Assets

17 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

Appendix 2: Sources of Growth in Reserve Money (millions of Ghana cedis unless otherwise stated)
Aug-22
Dec-22
Aug-23
Dec-23
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-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.

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 – September 2024

PUBLIC
PUBLIC
Table A.3: Asset and Liability Structure of the Banking Sector

Source: Bank of Ghana Staff Calculations

Table A.4: Credit Growth

Source: Bank of Ghana Staff Calculations

Table A.5: Contingent Liabilities

Source: Bank of Ghana Staff Calculations


Aug-21
Aug-22
Aug-23
Jun-24
Aug-24
Cash and Due from Banks
18.6

23.9

25.9

35.8

35.6

Investments
48.3

39.6

39.7

33.2

34.4

Net Advances
25.4

28.6

25.3

21.4

20.8

Others
7.7

7.9

9.2

9.6

9.3

Components of Liabilities and Shareholders' Funds (% of Total)
Total Deposits
67.1

66.8

77.6

76.1

75.1

Total Borrowings
11.3

11.5

5.7

7.2

7.6

Shareholders' Funds
14.1

13.0

9.8

10.0

9.8

Other Liabilities
7.5

8.7

7.0

6.8

7.5

Components of Assets (% of Total)
Aug-22
Aug-23
Jun-24
Aug-24
Aug-23
Aug-24
Public Sector
6,452.26


Private Sector
59,648.67


- Private Enterprises
43,930.46


o/w Foreign
6,717.59


Indigenous
37,212.87


- Households
13,837.50


Gross Loans

Economic Sector
Gh¢million
y/y growth (%)
Aug-21
Aug-22
Aug-23
Jun-24
Aug-24
Contingent Liabilities (GH¢million)
14,997.9

23,097.1

18,046.7

25,657.6

27,114.8

Growth (y-o-y)
39.1

54.0

(21.9)

29.0

50.2

% of Total Liabilities


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table A.6: Distribution of Loans and NPLs by Economic Sector (%)

Source: Bank of Ghana Staff Calculations


Table A.7: Liquidity Ratios

Source: Bank of Ghana Staff Calculations


Table A.8: Profitability Indicators (%)

Source: Bank of Ghana Staff Calculations


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
Aug-22
Aug-23
Jun-24
Aug-24
Share in Total
Credit
Share in NPLs Share in Total
Credit
Share in NPLs Share in Total
Credit
Jun-21
Jun-22
Jun-23
Apr-24
Jun-24
Liquid Assets (Core) - (GH¢'million)
33,656.1

46,726.4

67,100.0

107,918.8

115,827.0

Liquid Assets (Broad) -(GH¢'million)
109,129.9

127,547.3

156,811.9

213,585.9

222,701.8

Liquid Assets to total deposits (Core)-%
30.5

35.6

35.8

45.7

47.1

Liquid Assets to total deposits (Broad)- %
98.9

97.1

83.6

90.4

90.6

Liquid assets to total assets (Core)- %
20.7

23.4

27.7

35.2

35.8

Liquid assets to total assets (Broad)- %
67.0

63.8

64.7

69.6

68.9

Aug-22
Aug-23
Jun-24
Aug-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


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table A.9: DMBs’ Income Statement

Source: Bank of Ghana Staff Calculations


Table A.10: Developments in Offshore Balances

Aug-

Aug-

Aug-

Jun-

Aug-

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


Aug-22
Aug-23
Jun-24
Aug-24
Aug-23
Jun-24
Aug-24
Interest Income
14,759.1

20,330.3

17,980.5

24,126.8

37.7

19.1
18.7
Interest Expenses
(4,985.5)

(6,853.8)

(6,180.4)

(8,368.5)

37.5

18.6
22.1
Net Interest Income
9,773.6

13,476.4

11,800.0

15,758.3

37.9

19.4
16.9
Fees and Commissions (Net)
2,342.3

2,982.9

2,620.1

3,666.8

27.3

16.8
22.9
Other Income
2,036.4

3,350.9

2,352.5

3,252.3

64.6

(16.2)
(2.9)
Operating Income
14,152.3

19,810.2

16,772.7

22,677.4

40.0

12.3
14.5
Operating Expenses
(6,261.2)

(8,770.0)

(7,594.1)

(10,429.5)

40.1

15.5
18.9
Staff Cost (deduct)
(3,350.5)

(4,193.9)

(3,813.7)

(5,202.4)

25.2

22.2
24.0
Other operating Expenses
(2,910.7)

(4,576.0)

(3,780.4)

(5,227.0)

57.2

9.3
14.2
Net Operating Income
7,891.1

11,040.2

9,178.6

12,247.9

39.9

9.9
10.9
Total Provision (Loan losses, Depreciation
& others)
(1,798.1)

(2,416.6)

(1,048.2)

(1,953.6)

34.4

(39.5)
(19.2)
Income Before Tax
6,093.0

8,623.7

8,130.4

10,294.3

41.5

22.8
19.4
Tax
(2,076.3)

(2,957.0)

(2,733.8)

(3,632.3)

42.4

17.8
22.8
Net Income
4,016.7

5,666.6

5,396.5

6,662.0

41.1

25.5
17.6
Gross Income
19,137.8

26,664.1

22,953.1

31,045.9

39.3

14.0
16.4
(GH ¢'million)
Y-on-y Growth (%)

Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC
Table A.11 Fiscal Indicators

Source: Ministry of Finance


Million Ghana Cedis

JAN-JUL
Q1+Q2
JAN-JUL
JAN-JUL
DEYIATION
Y-O-Y
OUTTURN
OUTTURN
OUTTURN
PROG
OYER(+)/ BELOW(-)
GROWTH
Domestic Revenue
69,083.0

74,193.7

88,895.9

86,862.9

2.3

28.7

(percent of GDP)
8.2

7.3

8.7

8.5

2.3

6.2

Domestic expenditure
71,145.1

70,441.7

85,418.6

83,145.8

2.7

20.1

(percent of GDP)
8.5

6.9

8.4

8.2

2.7

(1.0)

Domestic Primary Balance
(2,062.1)

3,752.0

3,477.3

3,717.1

(6.5)

(268.6)

(percent of GDP)
(0.2)

0.4

0.3

0.4

(6.5)

(239.1)

Primary Balance (Commitment)
(7,897.2)

(2,255.2)

(3,806.3)

(3,520.7)

8.1

(51.8)

(percent of GDP)
(0.9)

(0.2)

(0.4)

(0.3)

8.1

(60.2)

Primary Balance (Cash)
(7,569.1)

(17,103.2)

(18,654.3)

(10,608.5)

75.8

146.5

(percent of GDP)
(0.9)

(1.7)

(1.8)

(1.0)

75.8

103.3

Non-Oil Primary Balance
(14,273.4)

(23,064.0)

(25,951.5)

(19,594.4)

32.4

81.8

(percent of GDP)
(1.7)

(2.3)

(2.5)

(1.9)

32.4

50.0

Overall Balance (Commitment)
(23,806.5)

(21,283.7)

(24,776.1)

(28,706.9)

(13.7)

4.1

(percent of GDP)
(2.8)

(2.1)

(2.4)

(2.8)

(13.7)

(14.1)

Overall Balance (cash, discrepancy)
(23,478.4)

(36,131.7)

(39,624.1)

(35,794.7)

10.7

68.8

(percent of GDP)
(2.8)

(3.5)

(3.9)

(3.5)

10.7

39.2

Oil Revenue
6,704.2

5,960.8

7,297.3

8,985.9

(18.8)

8.8

(percent of GDP)
0.8

0.6

0.7

0.9

(18.8)

(10.2)

Non-Oil Revenue and Grants
63,403.8

68,690.2

82,055.9

79,756.7

2.9

29.4

(percent of GDP)
7.5

6.7

8.0

7.8

2.9

6.8

Benchmark Oil Revenue
4,937.8

4,455.7

5,792.1

7,005.5

(17.3)

17.3

(percent of GDP)
0.6

0.4

0.6

0.7

(17.3)

(3.2)

Annual Budget Funding Amount (ABFA)
3,456.4

3,119.0

4,054.5

4,903.9

(17.3)

17.3

(percent of GDP)
0.4

0.3

0.4

0.5

(17.3)

(3.2)

Nominal GDP
841,632.9

1,020,179.9

1,020,179.9

1,020,179.9

Non-Oil Nominal GDP
803,900.9

904,452.9

904,452.9

904,452.9


Monetary Policy Report, BOG Research Department – September 2024

PUBLIC
PUBLIC

Table A.12: Headline Inflation


Combined
Food
Non-food
Combined
Food
Non-food
Core 1
Core 2
Core 3
Core 4
Dec-20

Dec-21

Dec-22


Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

June

July

Aug

Source: Ghana Statistical Service
Monthly Changes in CPI (%)
Annual Changes in CPI (%)
Core Inflation (%)
Bank of Ghana