F


BANK OF GHANA
MONETARY POLICY REPORT


November 2024
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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 121st meeting held in November 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 – November 2024
www.bog.gov.gh
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Table of Contents
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Overview
Global growth has remained robust, supported by the recovery of real incomes amid an ongoing
process of disinflation. The policy easing cycle initiated by major central banks in Advanced
Economies (AEs), in response to declining inflation rates, has generally supported growth. While global
growth is expected to remain steady at 3.2 percent for 2024 and 2025, potential challenges such as the
lagged effects of past policy tightening, persistent geopolitical tensions and a resurgence of trade
protectionist policies present downside risks to the outlook.

Global inflation continues to moderate, primarily driven by lower energy inflation, easing labour
cost pressures and the lagged effects of past monetary policy tightening. The moderation in global
inflation has been aided by a decline in oil prices, stemming from concerns about a potential economic
slowdown in China and increased crude oil supply from non-OPEC+ countries.

Global financial conditions remain restrictive despite recent policy rate cuts. In November, the
Federal Reserve, the European Central Bank, and Bank of England each reduced their respective key
policy rates by 25 basis points, based on their assessment of the inflation outlook. These central banks
have signaled that their monetary policy stance will remain restrictive for as long as necessary to ensure
that the disinflation process is not disrupted.

The Bank’s high frequency real sector indicators pointed to a sustained pick-up in economic
activity in the third quarter of the year. The updated real Composite ndex of Economic Activity
(CIEA) recorded an annual growth of 2.2 percent in September 2024, compared to a contraction of 0.4
percent in the corresponding period of 2023. Major drivers of the improvement in economic activity
include increased port activity, households and firms consumption of goods and services, construction
activities, credit to the private sector, and higher tourist arrivals.

Recent price developments show some sluggishness in the pace of disinflation. Since the last MPC
meeting, headline inflation readings for September and October point to upticks driven by food
price increases. Overall, headline inflation which stood at 20.4 percent in August, rose to 21.5 percent
in September and then further to 22.1 percent in October 2024. The rise in inflation has largely been
driven by food price pressures and some exchange rate pass-through effects from previous depreciation
of the currency.

The external sector position has improved remarkably in the year, supported by a higher current
account surplus and reduction in net financial outflows, leading to a strong external reserves
build-up. The current account surplus increased to US$2.2 billion in the first nine months of the year,
compared with a surplus of US$912 million over the corresponding period in 2023. From the beginning
of the year to end-September 2024, a reserve build-up of over US$1.91 billion was accumulated,
pushing Reserves up to US$7.83 billion (equivalent to 3.5 months of import cover).

Notwithstanding an elevated non-performing loans (NPL) profile, the banking sector remains
sound, well capitalized and liquid. The banking sector continued to record improvements in
performance with total assets growing by 42.4 percent to GH¢367.2 billion at end-October 2024,
compared to 3.2 percent at end-October 2023. Solvency indicators also improved, with the capital
adequacy ratio (with reliefs) increasing to 11.1 percent (14.2 %) from 7.3 percent (13.4%) in October
2023. Credit risk, however, remained elevated, with the NPL ratio rising to 22.7 percent from 18.3
percent over the review period
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1. Global Economic Developments

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

1.1 Global Growth Developments
Global growth has remained robust, supported by the recovery of real incomes amid an ongoing process
of disinflation. Global growth is projected to remain steady at around 3.2 percent in 2024 and 2025,
reflecting strong growth in both advanced and emerging market economies. The projections are
premised on the recovery of real incomes and household spending due to declining inflation. This is
despite the negative impact from restrictive financial conditions and heightened uncertainty arising from
geopolitical risks and elections-related uncertainty in many countries. Growth has been uneven across
regions and sectors. For instance, economic activity expanded strongly in the Euro Area and China in
the third quarter but moderated in Japan and the United Kingdom. Across sectors, high frequency data
points to a weakness in manufacturing arising from a reversal of frontloading of imports in the first half
of 2024. Within the manufacturing sector, the weakness was broad-based across regions, but more so
in the Euro Area. The IMF has revised its growth projections for 2025 down by 0.1 percentage points
to 3.2 percent due to the lagged effect of past policy hikes and the heightened uncertainty in the global
environment.

In the outlook, the risk to growth remains tilted to the downside. Even though policy easing has begun,
the lagged effect of past policy tightening could lead to a faster-than-anticipated deceleration in near-
term growth and rising unemployment. Also, underlying inflation may prove more persistent than
expected, de-anchoring near-term inflation expectations and weakening consumer and business
confidence. Surprises on either the pace of economic growth or inflation could trigger disruptive
corrections in financial markets, triggering sovereign debt distress in emerging markets. Again,
persistent geopolitical tensions and intensification of protectionist policies could potentially disrupt
trade, leading to sustained increases in prices of energy, food and other commodities. While increased
policy uncertainty associated with Donald Trump’s election win in the US may delay the pace of the
Fed’s policy easing, alongside the strengthening of the dollar, which may cause currency challenges for
EMDEs.
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Table 1.1: Global Growth Projections (%)
Overview of the World Economic Outlook Projections
(Percent change)

Projections
Difference from July
2024 WEO Update

World

Advanced Economies

United States

Euro Area

Germany

France

Italy

Spain

Japan

United Kingdom

Canada

Other Advanced Economies

Emerging Market and Developing Economies

China

India

Russia

Brazil

Mexico

Sub-Saharan Africa

Nigeria

South Africa

Ghana
2.9
4.0
4.4
Source: IMF, WEO October 2024, Update


1.2 Global Price Developments
Global inflation is gradually falling back to central bank targets in both advanced and emerging market
economies. The decline in headline inflation is partly due to lower energy inflation. Oil prices rose by
about 3.0 percent in September 2024 amid escalating geopolitical tensions in the Middle East, delay in
OPEC+ cuts and an improved growth outlook that supported demand. Prices then declined in October
amid concerns about possible economic slowdown in China and non-OPEC+ supply growth. However,
the IMF projects that the oil price is expected to rise to US$81 a barrel by the end of 2024 amid
production cuts by OPEC+, sustained global oil demand growth and geopolitical tensions. Long-term
inflation expectations remain anchored at 2 percent, while wage growth continues to cool. Also, the
lagged effects of past monetary policy tightening continue to work its way through the transmission
mechanism. Reflecting this, core inflation has declined in both advanced and emerging market
economies. However, the FAO global food price index increased by 2.0 percent in October 2024, driven
by unfavourable weather conditions and strong demand.

In the outlook, inflation is expected to fall back to target, helped by easing service price inflation as
labour cost pressures moderate. Inflation in the emerging market economies is projected to remain
generally higher than in the advanced economies, while also easing gradually.
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Figure 1.1: Headline Inflation Rates (%)
Source: Bank of Gana, /Trading Economics

1.3 Global Financial Markets Developments
Global financial conditions remain restrictive despite policy rate cuts. Major advanced economy central
banks have continued with their policy easing cycles, with the Fed, ECB and the Bank of England
cutting their policy rates by 25 basis points in November, based on their assessment of the inflation
outlook, dynamics of underlying inflation and the strength of the transmission mechanism. However,
most central banks have signalled that monetary policy will need to be restrictive for as long as it takes
to ensure that the disinflation process is not derailed.

Reflecting the rate cuts, long-term nominal bond yields declined in advanced economies, but yields
spiked after Trump’s victory, as investors were concerned that his proposed import tariffs and tax cuts,
along with mass deportations of immigrants, would be inflationary. Equity prices, in contrast, slipped
after the Fed pointed out that the economy was not sending enough signals to warrant a speedy rate cut.
Meanwhile, portfolio flows to emerging markets declined sharply in October 2024, falling to a 10-
month low of US$1.9 billion in October on the back of equity outflows of US$25.5 billion. However,
debt flows amounted to US$27.4 billion, driven by sell-offs in equity markets, amid rising global
uncertainty.

In the outlook, policy rates are projected to decline gradually, even as labour markets cool, and inflation
returns to target. However, rising uncertainty associated with intensifying protectionist policies and
geopolitical conflicts could force central banks to slow the pace of policy easing.
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Table 1.2: Monetary Policy Stance of Selected Central Banks
Country
Policy rate -
Previous (%)
Policy Rate
Current (%) Forecast
Inflation Sept,

Inflation
October, 2024 Real rate Infl Target
Overall
Fiscal
Deficit
(2023,%
of GDP)
GDP Growth
(Dec.2023)
Gross
Debt/GDP(2
023,%)
YTD
Depr/Nov.
20th 2024
U.S

Euro Area


1.4
< 2%

UK

Japan

Russia
19.0
21.0


India

4±2%
8.2

-1.43
Brazil

4.5±1.5%
2.9
84.7
-15.95
Turkey
50.0
50.0

49.38
48.58
1.42
5±2%

Malaysia

Indonesia

3.5% ± 1%
-1.6

39.6
-2.97
Chile
5.5
5.25

4.1
4.7
0.55
3±1%

Ghana
29.0
27.0

21.5
22.1
4.9
8±2%

South Africa

Nigeria

Kenya

Zambia
13.5
14.0


Morocco


69.5
-1.12
Angola

Egypt

7± 2%

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

1.4 Currency Markets
On the international currency market, the US dollar index has increased by about 6.0 percent since
October 2024, amid stronger growth and expected slower cuts to policy rate due to proposed Trump
policies. Also, increasing global uncertainty with regards to trade and geopolitics is lending support to
safe demand for the dollar. The stronger dollar has renewed currency pressures in some EMDEs.

In the interbank market, the cedi is making some gains in recent weeks, supported by increased Bank
of Ghana’s support, reserve build-up from the gold purchase programme, and remittances and mining
inflows. There were, however, demand pressures from election jitters, seasonal demand from
corporations and weak market sentiments around COCOBOD financing.

In the outlook, the cedi is expected to recover in the near term as the Bank of Ghana builds up enough
reserves and election-related demand wanes after the general elections. Also, positive sentiments from
the successful IMF review in December, and the success with the alternative COCOBOD financing
options will ease pressure in the forex market in the near term. However, the expected strength of the
dollar and lingering debt restructuring negotiations remain a risk to the stability of the cedi.

In the interbank market, the cedi depreciated by 27.1 percent, 27.8 percent and 25.8 percent against the
dollar, the pound and the euro, respectively, on a year-to-date basis in October 2024. This was against
a depreciation of 25.4 percent, 26.0 percent and 24.7 percent respectively during the same period in
2023.
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Table 1.3: Interbank Exchange Rates
US$/GHC*
Monthly
Year-to-Date
depreciation/a depreciation/
ppreciation
appreciation
GBP/GHC*
Monthly
Year-to-Date
depreciation/a depreciation/
ppreciation
appreciation
Euro/GHC*
Monthly
Year-to-Date
depreciation/ depreciation/a
appreciation ppreciation

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Source: Bank of Ghana Staff Calculations

The cedi depreciated by 35.9 percent in nominal trade weighted terms and 37.1 percent in forex
transaction weighted terms, respectively, on a year-to-date basis in October 2024. This is against a
depreciation of 32.9 percent and 33.9 percent, respectively, in nominal trade weighted terms and
nominal foreign exchange transaction weighted terms over the same period in 2023.

In real bilateral terms, the cedi depreciated by 19.1 percent, 19.7 percent and 16.8 percent against the
dollar, the pound sterling and the euro, respectively, on a year-to-date basis in October 2024.
Comparatively, for the corresponding period in 2023, the cedi’s real exchange rate depreciated by 15.9
percent, 16.7 percent and 14.1 percent, respectively.

The cedi depreciated by 17.4 percent and 18.9 percent in real trade weighted terms and real forex
transaction weighted terms, respectively, on a year-to-date basis. This compares with a depreciation of
14.6 percent and 15.8 percent, respectively, for the same period in 2023.
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Table 1.4: Nominal Effective Exchange Rate
Month
2021=100
FXTWI
TWI
Monthly CHG(%)
FXTWI
TWI
Year-to-Date
FXTWI
(%)
TWI
Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23

Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Source: Bank of Ghana Staff Calculations


Table 1.5: Real Bilateral Exchange Rate
RER Index (Jan.2021=100)
MONTHLY CHANGE (Index)
Year-to-Date (%)
Month
EUR
GBP
USD
EUR
GBP
USD
EUR
GBP
USD
Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23

Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Source: Bank of Ghana Staff Calculations
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Table 1.6: Real Effective Exchange Rate for Major Trade Partners
RTWI and FXRTWI
Month DEX (2021=100)
RFXTWI
RTWI
MONTHLY CHG
RFXTWI
RTWI
Year-to-Date
RFXTWI
(%)
RTWI
Jan-23

Feb-23

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23

Jan-24

Feb-24

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Source: Bank of Ghana Staff Calculations


1.5 Global Economic Outlook and Risks
Global growth has remained resilient, while global disinflation has continued, but many headwinds
remain. Financial conditions remain tight despite policy easing in major advanced economies. The US
dollar index has strengthened in recent weeks amid stronger growth in the US and the expectations that
the pace of policy easing will slow. There is also a possibility of renewed spikes in energy and food
prices arising from protectionist policies, geopolitical conflicts, and extreme weather conditions.
Inflation surprises may trigger repricing in financial markets, tighten financial conditions and trigger
debt distress and disorderly currency movements in emerging markets and developing economis.
Meanwhile, the uncertainty associated with China’s property sector and the recent weakness in
consumption have raised concerns about the health of the Chinese economy. Against this background,
the risk from the external sector is somewhat elevated.
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2. External Sector Developments

2.0 Highlights
The external sector position has improved remarkably in the year, supported by a higher current
account surplus and reduction in net financial outflows, leading to a strong external reserves build-up.
The current account surplus increased to US$2.2 billion in the first nine months of the year, compared
with a surplus of US$912 million over the corresponding period in 2023. The strong current account
surplus was supported by increased gold and crude oil exports as well as robust remittance inflows.
This development, together with a lower net outflow of US$414 million in the capital and financial
account (relative to a net outflow of US$1.4 billion in 2023) contributed to an improved balance of
payments position in the first three quarters of the year.

2.1 Commodity Price Trends
Prices of Ghana’s primary exports (cocoa, gold, and crude oil) traded mixed in October 2024. Cocoa
futures reverted to their downward trajectory after showing some signs of recovery in the previous
month. Prices dropped by 4.9 percent to settle at an average of US$7,273.57 per tonne in October 2024,
compared with US$7,646.70 per tonne in the preceding month. The decline in prices was supported by
favorable weather conditions in Cote d’Ivoire and Ghana, which have improved the outlook for the
2024/25 main crop.

Crude oil prices, on the other hand, rose by 3.7 percent to settle at an average of US$75.37 per barrel in
October 2024 as against the US$72.70 per barrel recorded in September 2024. Prices were supported
by the escalating geopolitical tensions in the Middle East, the decision by OPEC+ to delay oil
production increases and an improved growth outlook following expectations of rate cut by the Fed.

The rally of gold prices continued into October 2024, reaching an average price of US$2,689.38 per
fine ounce, up by 4.7 percent. Prices rose as uncertainties surrounding the US presidential elections and
the Middle East conflict, along with expectations of an interest rate cut by the Federal Reseves boosted
bullion’s appeal.

2.1.1 Commodity Price Index
The weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude
oil) softened in the month of October 2024. The index fell to 190.53 in October 2024, from 192.48 in
the previous month, representing a decline of 1.0 percent. The dip was on account of a moderation in
the cocoa sub-index, which offset the increase in the crude oil sub-index, while the gold sub-index
remained unchanged during the period under review. The cocoa sub-index declined by 4.9 percent,
while the crude oil sub-index increased by 3.7 percent, with the gold sub-index remaining flat.
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2.2 Trade Balance
Transactions in Ghana’s trade account for the first ten months of 2024 resulted in a doubling of the trade
surplus to US$3.85 billion, from the US$1.93 billion recorded during the same period in 2023. The
improved trade surplus stemmed from a higher increase in exports relative to imports. Total exports
increased by 23.9 percent to US$16.51 billion, largely driven by robust increases in gold and crude oil
exports, notwithstanding the slump in cocoa exports.

The value of gold exports rose by 61.7 percent to US$9.58 billion on account of increases in both the
volume and price of gold. The volume of gold exports increased by 32.4 percent to 4.29 million fine
ounces, largely on the back of increased output from the licensed small-scale gold mines, coupled with
the sustained output of the large-scale mines. Small-scale gold output increased sharply by 124.9 percent
to 2.0 million ounces, while large-scale gold production rose by 5.3 percent to 2.3 million ounces. The
average realized price for gold increased by 32.1 percent to US$2,689.38 per fine ounce. Earnings from
crude oil exports increased by 8.5 percent to US$3.33 billion, due to a 10.5 percent rise in the volume
of production, particularly from the Jubilee field, while the price dipped by 1.8 percent to US$81.1 per
barrel.

In contrast, cocoa exports, both beans and products, plummeted by 33.2 percent to US$1.15 billion in
October 2024, from US$1.72 billion in the first ten months of 2023. The sharp drop in the value of
cocoa exports reflected the challenges in the sector, including extreme weather conditions, diseases and
smuggling. Similarly, “other exports”, (including non-traditional exports) declined by 6.0 percent to
US$2.45 billion, from US$2.61 billion during the same review period in 2023.
Figure 2.1: International Cocoa Prices (US$/metric tonnes)
Figure 2.1: International Cocoa Prices (US$/metric tonnes)


2,000.00


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


120.00


100.00


80.00


60.00


40.00


20.00


-


Source: Reuters
Figure 2.4: Commodity Price Index


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


Source: Reuters
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Total imports, on the other hand, rose by 11.0 percent to US$12.66 billion in the first ten months of the
year, from US$11.41 billion in the corresponding period of 2023, due to a pick-up in non-oil imports,
while oil imports declined. Non-oil imports increased by 17.8 percent to US$8.99 billion, whereas oil
imports contracted by 2.8 percent to US$3.68 billion during the period under review.

2.3 Current Account
The current account recorded a surplus of US$2.16 billion in the first nine months of 2024, representing
a sharp increase of 137.0 percent over the surplus of US$912.0 million recorded during the same period
in 2023. The higher current account surplus was on the back of the improved trade surplus and higher
remittance inflows. Net remittance flows for the review period increased by 22.3 percent to US$3.93
billion in 2024, from US$3.21 billion in 2023. Net income payment and payment for services, however,
increased by 34.5 percent and 24.2 percent, respectively, to US$2.0 billion and US$3.08 billion in the
same reference period.

2.4 Capital and Financial Accounts
The capital and financial accounts for the first nine months of 2024 showed a significantly lower net
outflows of US$414.0 million from US$1.37 billion in the corresponding period of 2023. The lower
capital outflow was driven mainly by higher government loan disbursements, reduced amortizations,
and lower portfolio outflows. Portfolio outflows, on net basis, amounted to US$18.0 million in
September 2024, compared to US$195.0 million in the same period in 2023, representing a decline of
90.8 percent. Government loan amortization also slowed by 65.4 percent to US$167.0 million on
account of the debt standstill, while disbursements, largely from the IMF and the World Bank, increased
by 59.2 percent to US$1.92 billion, from US$1.20 billion in September 2023. Similarly, net foreign
direct investment (FDI) showed an inflow of US$1.25 billion in the first three quarters of 2024, an
increase of 37.6 percent from the US$910 million recorded in the same period of 2023. “Other capital”,
including private capital, recorded a higher net outflow of US$1.74 billion, compared to an outflow of
US$1.70 billion in the corresponding period of 2023.

The current account surplus, together with the reduced capital outflows, resulted in an overall Balance
of Payments surplus of US$1.91 billion in the first nine months of 2024, compared to a deficit of
US$617.0 million for the same period in 2023.

2.5 International Reserves
Gross International Reserves (GIR) increased to a stock position of US$7.83 billion at the end of
September 2024, enough to cover 3.5 months of imports of goods and services. The GIR at the end of
October 2024 was US$7.68 billion, equivalent to 3.5 months of import cover. Net International Reserves
(NIR) also increased by US$2.01 billion to US$5.20 billion at end-September 2024. Under the IMF
programme, there has been a reserve accumulation of US$1.3 billion at the end of October 2024, above
the end-year target of US$908 million. The higher build-up in the GIR was largely on account of the
strong performance of the Domestic Gold Purchase Programme.

2.6 Commodity Price Outlook
The outlook for the prices of Ghana’s major export commodities remains mixed. Cocoa has stabilised
at prices well below peaks reached in April as favourable weather has improved the outlook for the
2024/2025 crop season in West Africa. The crop may remain underpinned by extremely tight supplies
this season, though expectations for a much larger crop in 2024/25 (October-September) may limit
gains. The oil market is expected to remain supported on concerns of escalating geopolitical tensions in
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the Middle East, announcement by OPEC+ of a 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. The anticipation of rate cuts by the Federal Reserve, along with continued
inflationary pressures and geopolitical risks, are likely to further bolster gold's appeal as a hedge against
market volatility.

Table 2.1: Trade Balance (US$ million)
Source: Bank of Ghana

Trade Bal (% GDP)
o/w Non-Tradional Exports
2.5


2.5
4.6


2.3
0.1


-46,501.0
-23.3


Non-Oil


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3. Real Sector Developments

3.0 Highlights
On the domestic economy, high frequency indicators point to continued improvement in economic
activity. In the third quarter, the Bank’s high frequency real sector indicators pointed to a sustained
pick-up in economic activity. The updated real Composite Index of Economic Activity (CIEA) recorded
an annual growth of 2.2 percent in September 2024, compared to a contraction of 0.4 percent in the
corresponding period of 2023. Major drivers of the improvement in economic activity include increased
port activity, households and firms consumption of goods and services, construction activities, credit to
the private sector, and higher tourist arrivals.


3.1 Trends in Real Sector Indicators

Consumer Spending
Consumer spending, proxied by domestic VAT collections and retail sales, posted a positive
performance in September 2024, compared with the corresponding period in 2023. Domestic VAT
collections increased by 34.1 percent on a year-on-year basis to GH¢1.39 billion, from GH¢1.04 billion.
Cumulatively, total domestic VAT for the first three quarters of 2024 went up by 27.5 percent to
GH¢12.33 billion, compared with GH¢9.67 billion for the corresponding period of last year.

Retail sales increased by 44.9 percent (year-on-year) to GH¢238.32 million in September 2024, up from
the GH¢164.48 million recorded in the same period in 2023. On a month-on-month basis, retail sales
improved by 7.6 percent in September 2024, from GH¢221.48 million in the preceding month. In
cumulative terms, retail sales for the first three quarters of 2024 went up by 25.7 percent. The relative
improvement in retail sales, year-on-year, was due to increased household spending during the review
period.

Manufacturing Activities
Activities in the manufacturing sub-sector, gauged by trends in the collection of direct taxes and private
sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension
Scheme (Tier-1), improved in September 2024. Total Direct Taxes collected increased by 41.0 percent
(year-on-year) to GH¢8.34 billion in September 2024, relative to GH¢5.91 billion recorded in a similar
period in 2023. Cumulatively, total direct taxes collected for the first three quarters of 2024 went up by
42.5 percent to GH¢50.11 billion, from GH¢35.17 billion for the same period in 2023. In terms of
contributions of the various sub-tax categories, corporate tax accounted for 65.7 percent, income tax
(PAYE and self-employed) accounted for 24.8 percent, while “Other Tax Sources” contributed 9.5
percent.

Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 33.4
percent on year-on-year terms to GH¢460.34 million in September 2024, from GH¢345.16 million
collected during the corresponding period in 2023. Cumulatively, for the first three quarters of 2024,
the contribution grew by 26.3 percent to GH¢3.73 billion, relative to GH¢2.95 billion recorded in the
same period in 2023.
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Construction Sector Activities
Activity in the construction sub-sector, proxied by the volume of cement sales, improved by 13.4
percent (year-on-year) in September 2024 to 219,917.77 tonnes, up from 193,947.87 tonnes recorded a
year ago. On a month-on-month basis, total cement sales declined by 9.0 percent in September 2024,
compared with 241,571.96 tonnes recorded in August 2024. Cement sales for the first three quarters of
2024 went up by 6.4 percent to 2.06 million tonnes, from 1.94 million tonnes for the same period of
2023. The relative improvement in total cement sales, year-on-year, was due to an uptick in construction
activities during the review period.

Vehicle Registration
Transport sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing
Authority (DVLA), improved by 28.6 percent to 12,511 in September 2024, from 9,730 vehicles
registered during the corresponding period of 2023. Cumulatively, vehicles registered by the DVLA
within the first three quarters of 2024 increased by 14.4 percent to 136,112 from 118,967 recorded a
year ago.

Industrial Consumption of Electricity
Industrial consumption of electricity declined by 11.5 percent in September 2024 to 274.26 gigawatts,
as against 309.80 gigawatts recorded for the corresponding period in 2023. In cumulative terms,
electricity consumed by industries for the first three quarters of 2024 decreased by 5.8 percent to
2,528.35 gigawatts, from 2,682.91 gigawatts for the corresponding period a year ago.

Passenger Arrivals
Passenger arrivals improved by 8.4 percent in year-on-year terms to 103,387 in September 2024, up
from 95,378 arrivals recorded a year ago. Compared to August 2024, passenger arrivals dipped by 9.2
percent. For the first three quarters of 2024, there were 941,692 arrivals recorded at the international
airport and the land borders, compared with 815,812 for the corresponding period in 2023, representing
a growth of 15.4 percent.

Ports and Harbours Activity
International trade at the country’s two main harbours (Tema and Takoradi), as measured by laden
container traffic for inbound and outbound containers, improved during the period under review. Total
container traffic increased by 25.0 percent, year-on-year, to 61,093 in September 2024, from 48,876 for
a similar period in 2023. In cumulative terms, total container traffic for the first three quarters of 2024
went up by 15.3 percent, to 525,623 compared with 455,966 for the corresponding period of last year.


3.2 Labour Market Activity

Private Sector Pension Contributors
Total number of private sector SSNIT contributors, which partially gauges employment conditions,
improved by 4.6 percent to 1,039,754 in September 2024, compared with 994,406 for the same period
in 2023. Cumulatively, for the first three quarters of 2024, the total number of private sector contributors
increased by 5.8 percent to 9,308,415 from 8,797,826 recorded over the corresponding period in 2023.
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Advertised Jobs
The number of jobs advertised in selected print1 and online2 media, which partially gauges labour
demand in the economy, remained largely unchanged in October 2024 relative to what was observed in
the corresponding period of 2023. In total, 2,849 job adverts were recorded, as compared with 2,831 for
the same period in 2023. However, on a month-on-month basis, the number of job vacancies in October
2024 declined by 3.1 percent from the 2,941 jobs advertised in September 2024. Cumulatively, for the
first ten months of 2024, the total number of advertised jobs went up by 7.3 percent to 30,218, from
28,152 recorded during the same period in 2023.

3.3 Composite Index of Economic Activity
The Bank’s updated real Composite Index of Economic Activity (CIEA) recorded an annual growth of
2.2 percent in September 2024, compared to a contraction of 0.4 percent in the corresponding period of
2023. Major drivers of the improvement in economic activity include increased port activity,
households’ and firms’ consumption of goods and services, construction activities, credit to the private
sector and higher tourist arrivals.

3.4 Consumer and Business Surveys
The latest confidence surveys conducted in October 2024 largely reflected a sustained recovery in
sentiments. The Consumer Confidence Index remained generally stable at 86.1 in October 2024
compared to 87.6 in August 2024. The Business Confidence Index, on the other hand, improved to 92.8
from 91.1 in the same comparative period as firms met their short-term targets and expressed optimism
about company and industry prospects. The survey findings were broadly consistent with trends
observed in Ghana’s Purchasing Managers’ Index (PMI), which also signalled an improvement in
business conditions. The PMI increased to 50.6 in October 2024, from 49.1 in September 2024.


1 The Daily Graphic newspaper was used to represent print media because it is the most widely circulated daily in Ghana.
2 These are job adverts posted on the websites of the 10 main online job advertising/employment companies in Ghana.
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Figure 3.1: High Frequency Economic Indicators
Million, GHC
340.00
290.00
240.00

190.00

140.00
90.00

40.00
Million, GHC

Thousands, tons
Thousands
Thousands
SSNIT Contributions from Private Sector
Million GHC
Panel 1:
Ghana's Leading Indicators of Economic Activity
...Retail sales improved while Domestic VAT collections declined in September
...Labour market conditions improved in September 2024 relative to August
...Labour hiring conditions, proxied by the number of private sector
workers contributing to SSNIT, improved...
Thousands
Sep-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
Sep-24
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
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Million, USD
Imports and Exports


GWh


Billion, GHC
Number of advertised jobs
Percent, y-o-y

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

...Imports improved while Exports declined in September 2024 compared to
relative to the pevious month...
online media), declined in October 2024...
...On a year-on-year basis, the real CIEA grew by 2.2 percent in September 2024,
...The growth in the real CIEA was driven by a pick-up in Port Activity, Exports,
Source: Bank of Ghana, Various Stakeholders
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
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Billion, GHC
Vehicle Registration
Number of vehicles
Index
Index
Panel 3:
Ghana's Leading Indicators of Economic Activity
...Consumer confidence remained generally stable...
...Business confidence increased as firms met their short-term targets and
expressed optimism about company and industry prospects....
Source: Bank of Ghana, Various Stakeholders
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
May-24
Jul-24
Sep-24
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4. Monetary and Financial Developments

4.0 Highlights
Developments in monetary aggregates for October 2024 showed significant acceleration in the pace of
growth in broad money supply (M2+) relative to the corresponding period of 2023, largely on the back
of a net buildup in foreign assets of depository corporations, while domestic assets increased, on net
basis, to reinforce growth in M2+. Developments in credit to the private sector continued to show
sustained growth, supported by a pickup in real sector activities. Interest rates continue to decline at
the short-end of the market. The 91-day and 182-day Treasury bill rates decreased to 25.80 percent and
27.01 percent respectively, in October 2024, from 29.40 percent and 31.37 percent respectively for the
corresponding period of 2023. Similarly, the rate on the 364-day instrument declined to 28.70 percent
in October 2024 from 33.16 percent in October 2023. The Interbank Weighted Average Rate decreased
to 27.69 percent in October 2024 from 28.49 percent in October 2023, reflecting the transmission of
the reduction in monetary policy rate to the interbank market. Similarly, the average lending rates of
banks declined marginally to 30.45 percent in October 2024 from 32.69 percent, recorded in the
corresponding period of 2023.


4.1 Developments in Monetary Aggregates

Money Supply
In October 2024, broad money supply (M2+) recorded higher growth relative to the corresponding
period in 2023. This was on the back of net buildup in both foreign and dometic assets of depository
corporations. Annual growth in M2+ increased to 43.8 percent in October 2024, relative to 20.4 percent
in the corresponding period in 2023. The contribution of Net Domestic Asset (NDA) to the growth of
M2+ increased to 13.2 percent, from 9.4 percent, while the contribution of Net Foreign Asset (NFA)
increased to 30.6 percent, from 11.0 percent, over the same comparative period. In terms of annual
growth rates, NDA expanded by 13.3 percent in October 2024, relative to a growth of 8.5 percent in
October 2023, while NFA expanded by 6,613.61 percent, relative to a growth of 105.34 percent, over
the same comparative period.
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Figure 4.1a: M2+ Growth and its Sources
(% Contributions)
Net Foreign Assets
80.00
NDA
60.00
Total Liquidity (M2+)


Source: Bank of Ghna
Figure 4.1b: Banking Sector NDA and
100.00
its Sources (% Contributions)
80.00
NCG
Claims on Priv. Sect. (Incl. PE's)60.00
BOG OMO Steril. Acc.
40.00
OIN
NDA


Source: Bank of Ghna


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

The increase in the contribution of NDA to the growth of M2+ was mainly driven by increase in Net
Claims on Government (NCG) and a slowdown in OMO sterilization. This was moderated by
contraction in the Other Items (Net) (OIN). Claims on both the private and public sectors continued to
expand in the review month, which reflected mainly in an increase in domestic currency credit.

Analysis of the components of M2+ showed that the increase in the growth in M2+ was largely reflected
in increased growth in currency with the public, demand deposits and foreign currency deposits in
October 2024, relative to same period in 2023. Growth in savings and time deposits, however, decreased
over the same comparative period.
4.2 Reserve Money
Growth in Reserve Money (RM) remained strong, largely on the back of significant expansion in the
Net Foreign Assets (NFA), driven by proceeds from Gold for Reserve (G4R) Programme, Gold for Oil
(G4O) programme, forex purchases, and proceeds from cocoa syndicated loan. The growth in RM was
also underpinned by the dynamic Cash Reserve Requirement, which instigated an increase in banks’
Dem. Dep
Sav and Time Dep.
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reserves to shore up regulatory reserves. Annual growth in reserve money increased significantly to
104.5 percent in October 2024, from negative 2.6 percent recorded in the corresponding period of 2023.

Growth in NDA increased on the back of net outflows through OMO sterilization as well as expansion
in the Net Claims on Government, partly reflecting a net drawdown on Government’s deposits. The
contribution of NDA to the growth in RM increased to 28.7 percent in October 2024, compared to
negative 13.3 percent recorded in October 2023. Similarly, the contribution of the NFA to the growth
in RM increased to 75.9 percent, relative to a growth of 10.7 percent, over the same comparative period.

Figure 4.3a: RM Growth and Contribution from
NFA and NDA (%)
NDA
NFA
Source: Bank of Ghana

Figure 4.3b: BOG NDA and Its Sources (%
Contributions)
250.0
NCG
NC_DMBs 200.0


Source: Bank of
Ghana


4.3 Deposit Money Banks Credit Developments
Total DMBs’ credit to the private sector and public institutions increased by GH¢20.95 billion (28.50%)
in October 2024 compared to a decrease of GH¢7.70 billion (9.48%) recorded in October 2023. The
increase in credit flows was largely due to expansion of credit to the private sector by GH¢19.44 billion
(28.83%) in October 2024, compared to a decrease of GH¢5.44 billion (7.74%) recorded in the
corresponding period of 2023. The increased flow of credit to the private sector in nominal terms was
on the back of increase in domestic currency credit, underpinned by a pickup in real sector activities.

Private sector credit accounted for 92.8 percent of the flow in total outstanding credit in October 2024,
relative to 78.8 percent recorded in the corresponding period of 2023. The top five sectors with
significant shares of credit flows were: services (24.5%); commerce and finance (19.2%); import trade
(12.6%); construction (11.4%); and manufacturing (10.6%).

Total outstanding credit to the private sector at the end of October 2024 was GH¢86.85 billion,
compared with GH¢67.41 billion recorded in October 2023. In real terms, credit to the private sector
increased by 5.5 percent, relative to 31.6 percent contraction recorded over the same comparative period
in 2023. The boost in growth of credit was supported by the pick-up in real sector activities and the
disinflation process broadly observed over the comparative period. Growth in real private sector credit
remained above its trend during the review month.
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Figure 4.4a: Share in Annual Flow of Credit to
the Private Sector (%)
Oct-23
Oct-24


Source: Bank of
Ghana
Figure 4.4b: Annual Growth in Real Private Sector
Credit (%)
13.00
RGPSC
TREND


Source: Bank of Ghana


4.4 Money Market Developments
Interest rates broadly showed downward trends at the short end of the primary market, on year-on-year
basis. Interest rates on longer-dated instruments, however, remained stable. The 91-day and 182-day
Treasury bill rates decreased to 25.80 percent and 27.01 percent respectively, in October 2024, from
29.40 percent and 31.37 percent in the corresponding period of 2023. Similarly, the rate on the 364-day
instrument declined to 28.70 percent in October 2024, from 33.16 percent in October 2023. Rates on
the 2-year, 3-year, 5-year, 6-year, 7-year, 10-year, 15-year, and 20-year bonds, however, remained
broadly stable 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 due to the non-issuance of these instruments during the review
period.

The Interbank Weighted Average Rate (IWAR) decreased to 27.69 percent in October 2024, from 28.49
percent in October 2023, reflecting the transmission of the reduction in monetary policy rate to the
interbank market. Similarly, the average lending rates of banks declined marginally to 30.45 percent in
October 2024, from 32.69 percent recorded in the corresponding period of 2023, reflecting the pass-
through effect of declines in the rates on the wholesale funds market.
Figure 4.6: Yield Curve
35.00
Oct-23
Oct-24
30.00

25.00

20.00

15.00
Source: Bank of Ghana
Source: Bank of Ghana
Figure 4.5: MPR, Interbank and T-bill Rates and
Inflation
MPR
52.00
91-Day T-bill rate 47.00

Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
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4.5 Stock Market Developments
The Ghana Stock Exchange Composite Index (GSE-CI) increased to 4,385.94 points in October 2024,
from 3,125.62 points recorded in the corresponding period of 2023. This translates into a year-on-year
gain of 40.3 percent in October 2024, compared to a growth of 27.0 percent in October 2023. The robust
performance of the GSE-CI was underpinned by improved investor appetite, driven by significant
recovery in the profitability of listed financial institutions and improved liquidity. The GSE-CI has also
been boosted by the limited investment options on the domestic markets on account of the Domestic
Debt Exchange Programme (DDEP). The main sectors that contributed to the gains recorded by the
GSE-CI were food and beverages, manufacturing, distribution, finance, ETFund and agriculture.

The GSE-Financial Stocks Index (GSE-FI) closed at 2,237.45 points, reflecting a year-on-year gain of
13.04 percent in October 2024, compared to a loss of 4.37 percent, over the same comparative period
in 2023. The gain in the GSE-FSI was mainly on the back of improved profitability of listed financial
institutions, following sustained periods of losses induced by the impact of the DDEP.
Figure 4.7: Real Interest Rates and Inflation
Real MPR
Real 91 Day T-bill Rate
Real Interbank Rate
Real Lending Rate
Real Deposit Rate
Inflation

Source: Bank of Ghana
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Total market capitalisation of the GSE at the end of October 2024 was GH¢100.15 billion, representing
a year-on-year growth of 35.8 percent (GH¢26.41 billion), compared with a growth of 13.9 percent
(GH¢9.01 billion) in October 2023. The increase in market capitalization was mainly driven by
appreciation in share prices, underpinned by renewed investor confidence, particularly in the mining,
IT, and finance sectors. This was also supported by the issuance of new shares by CAL Bank and ADB.

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

GSE CI

GSE FI

Market Capitalization

Source: Ghana Stock Exchange and Bank of Ghana Staff Calculations


4.6 Conclusion
Developments in monetary aggregates for October 2024 showed significant acceleration in the pace of
growth in broad money supply (M2+) relative to the corresponding period of 2023, largely on the back
of a net buildup in net domestic asset and net foreign assets of depository corporations. The Central
Bank’s balance sheet recorded sustained growth in RM largely on the back of significant expansion in
the NFA. Developments in credit to private and public sectors showed sustained expansion on the back
of increase in domestic currency credit, supported by improvements in real sector activities. In real
terms, growth in private sector credit increased relative to a contraction in the corresponding period in
October 2023, supported by the disinflation process and growth in nominal credit.

Developments in interest rates broadly showed downward trends at the short-end of the primary market,
on year-on-year basis. Rates on longer-dated instruments, however, remained stable. On the interbank
market, the Interbank Weighted Average Rate (IWAR) declined, reflecting the transmission of the
reduction in monetary policy rate to the interbank market. Similarly, the average lending rates of banks
declined marginally, reflecting the pass-through effect of declines in the rates on the wholesale funds
market.
Chart 9a: GSE Composite Index

Source: Bank of Ghana

Chart 9b: GSE Financial Stocks Index

Source: Bank of Ghana

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The GSE Composite Index (GSE-CI) recorded increased year-on-year gain in October 2024 relative to
the corresponding period last year. The performance of the GSE-CI is underpinned by improved
investor appetite, driven by significant recovery in the profitability of listed financial institutions and
improved liquidity. The GSE-CI has also been boosted by shift in investment towards the capital
markets following the Domestic Debt Exchange Programme (DDEP).
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5. Banking Sector Developments

5.0 Highlights
Notwithstanding an elevated non-performing loans (NPL) profile, the banking sector remains sound,
well capitalized and liquid. The banking sector continued to record improvements in performance with
total assets growing by 42.4 percent to GH¢367.2 billion at end-October 2024, compared to 3.2 percent
at end-October 2023. Solvency indicators also improved, with the capital adequacy ratio (with reliefs)
increasing to 11.1 percent (14.2 %) from 7.3 percent (13.4%) in October 2023. Credit risk, however,
remained elevated, with the NPL ratio rising to 22.7 percent from 18.3 percent over the review period.
In the outlook, performance will be contingent on a rebound in profits, continuous adherence to
recapitalisation plans and enforcement of strict credit underwriting standards. Growth in private sector
credit increased to 28.8 percent in October 2024 from negative 7.5 percent recorded in the
corresponding period of 2023. In real terms, credit to the private sector increased by 5.5 percent
relative to a 31.6 percent contraction, recorded over the same comparative period.

5.1 Banks’ Balance Sheet
Total assets of the banking sector grew by 42.4 percent to GH¢367.2 billion as at October 2024,
compared with 3.2 percent growth recorded in October 2023. In terms of components, foreign assets
grew by 102.3 percent in October 2024, from 14.3 percent in October 2023, while domestic assets went
up by 37.1 percent in October 2024, compared to 2.3 percent growth a year earlier. The share of foreign
assets in total assets increased from 8.2 percent to 11.6 percent, while that of domestic assets declined
to 88.4 percent from 91.8 percent, during the same reference period, on account of the stronger growth
in foreign assets in October 2024.

Banks’ investments increased by 13.7 percent to GH¢118.0 billion at end-October 2024, compared to a
growth of 22.0 percent in October 2023. The moderation in growth over the review period reflected
trends in banks’ short-term investments (bills), which contracted by 2.7 percent in October 2024, in
contrast to a robust growth of 285.8 percent in October 2023. Investments in long-term instruments, on
the other hand, increased by 29.0 percent, from a contraction of 25.5 percent recorded in October 2023,
reflecting, in part, the reclassification of the restructured cocoa bills to bonds, and exchange rate effects.

Credit growth improved within the banking sector, reflecting the sustained pick-up in economic activity.
Gross loans and advances grew significantly by 28.5 percent to GH¢94.5 billion in October 2024,
compared to 9.5 percent contraction in October 2023. Net loans and advances (gross loans adjusted for
provisions and interest in suspense) grew by 23.3 percent in October 2024, compared to a 12.8 percent
contraction in October 2023.

Deposits remained the main source of funding for the banking sector, accounting for 75.5 percent share
of total assets in October 2024. Deposits increased by 38.7 percent year-on-year to GH¢277.3 billion in
October 2024, compared with 16.2 percent growth in the same period of last year, on the back of
increases in domestic currency deposits. Foreign currency deposits in cedi terms, however, grew by
39.8 percent to GH¢90.4 billion in October 2024, compared to a contraction of 7.0 percent a year ago,
partly driven by exchange rate effects.

Borrowings also increased by 75.4 percent to GH¢26.2 billion in October 2024, from a contraction of
50.9 percent in October 2023. The increase in borrowings in October 2024 was due to the significant
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growth in domestic and foreign short-term borrowings. Long-term foreign borrowings, on the other
hand, contracted by 34.2 percent in October 2024, following a decline of 53.0 percent in October 2023.
Meanwhile, long-term domestic borrowings recorded a growth of 62.1 percent, compared to the
previous year’s contraction of 36.8 percent.

The industry’s shareholders’ funds (comprising paid-up capital and reserves) grew by 49.5 percent to
GH¢37.9 billion in October 2024, compared to a contraction of 4.2 percent in October 2023. The
increase in shareholders’ funds was due to improved profitability and capital increases from the on-
going recapitalization of the sector.

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

A. Foreign Assets

B. Domestic Assets

Investments

i. Bills

ii. Securities

Advances (Net)

of which Foreign Currency

Gross Advances

Other Assets

Fixed Assets

TOTAL LIABILITIES AND CAPITAL

Total Deposits

of which Foreign Currency

Total Borrowings

Foreign Liabilities

i. Short-term borrowings

ii. Long-term borrowings

iii. Deposits of non-residents

Domestic Liabilities

i. Short-term borrowing

ii. Long-term Borrowings

iii. Domestic Deposits

Other Liabilities

Paid-up capital

Shareholders' Funds

Source: Bank of Ghana


5.1.1 Asset and Liability Structure
The asset structure of the industry’s balance sheet in October 2024 remained tilted towards 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) policy. Accordingly, the share of cash and bank
balances rose from 26.3 percent in October 2023 to 37.2 percent at end-October 2024 as banks increased
reserves, in compliance with the new CRR requirements. Investments (comprising bills, securities, and
equity) was the second largest component of banks’ assets in October 2024, although its share in total
assets declined to 32.1 percent in October 2024, from 40.2 percent in October 2023. Investments and
cash and bank balances together accounted for 69.3 percent of total assets in October 2024, compared
to a share of 66.5 percent in October 2023. Notwithstanding the pick-up in credit growth, net loans and
advances constituted the third-largest component of total assets, recording a share of 21.2 percent in
October 2024, down from 24.4 percent in October 2023. The share of non-earning assets (fixed assets
and other assets) in banks’ total assets increased marginally to 9.5 percent in October 2024, from 9.1
percent during a similar period in 2023.
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The funding structure of banks continued to be dominated by deposits. However, the share of deposits
in banks’ liabilities and shareholders’ funds declined to 75.5 percent in October 2024, from 77.5 percent
in the corresponding period last year, following a moderation in growth. The share of borrowings rose
to 7.1 percent in October 2024, from 5.8 percent in October 2023, in line with the observed strong
growth in total borrowings. The share of shareholders’ funds in banks’ liabilities and capital inched up
to 10.3 percent in October 2024, from 9.8 percent over the same comparative period last year, consistent
with the observed increase in shareholders’ funds. The share of “other liabilities” also increased
marginally to 7.0 percent in October 2024, from 6.8 percent during the same period a year ago.

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


Source: Bank of Ghana

5.1.2 Share of Banks’ Investments
Long-term securities constituted the largest component of banks’ investment portfolio, with its share
increasing from 51.6 percent in October 2023 to 58.5 percent in October 2024. The share of bills (short-
term debt instruments), however, dropped from 48.2 percent in October 2023 to 41.2 percent in October
Asset Structure of Banks (%)


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


Aug-22
Aug-23
Jun-24
Aug-24
Total Deposits Total Borrowings
Shareholders' Funds Other Liabilities
Components of Banks' Investments (% share)

48.8

59.8
55.7


17.8

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

Public sector
Private sector


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

NPL ratio in each Sector (%)

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


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2024, in line with the moderation in growth recorded during the reference period. The share of equity
investments remained negligible and flat at 0.3 percent during the period under review.

5.2 Credit Risk
The industry’s asset quality deteriorated in October 2024, relative to the outturn for October 2023. The
elevated credit risk was broad-based, with increases in non-performing loan (NPL) ratios in all
economic sectors except for the construction sector. This led to a rise in the NPL ratio, pointing to
heightened credit risk within the banking industry.

5.2.1 Credit Portfolio Analysis
The stock of gross loans and advances increased by 28.5 percent in October 2024 to GH¢94.5 billion,
compared to a contraction of 9.5 percent in October 2023, reflecting increases in both private sector and
public sector credit. Private sector credit (comprising credit to private enterprises and households) grew
by 28.8 percent to GH¢86.8 billion in October 2024, from a contraction of 7.5 percent in the previous
year. Similarly, public sector credit increased by 24.9 percent to GH¢7.6 billion at end-October 2024,
compared to a contraction of 27.0 percent in October 2023. Consequently, the share of private sector
credit in total credit inched up marginally to 91.9 percent in October 2024, from 91.7 percent in October
2023, while the share of public sector declined to 8.1 percent, from 8.3 percent a year earlier.

In terms of the sectoral distribution of credit, the services sector remained the largest recipient of the
industry’s credit, accounting for a share of 31.4 percent at end-October 2024 (from 34.1% in October
2023), followed by the commerce and finance sector with a share of 25.4 percent (from 22.6%). The
manufacturing sector accounted for a 10.2 percent share, (marginally up from 10.3%). Together, these
three sectors accounted for 67.0 percent of total credit in October 2024 (compared with 67.1% in
October 2023). The mining and quarrying sector was the lowest recipient of credit with a share of 2.9
percent (down from 3.0% in October 2023).

5.2.2 Off-Balance Sheet Transactions
Off-balance sheet transactions (largely trade finance and guarantees) went up during the review period.
Banks’ contingent liabilities rose by 39.8 percent to GH¢27.2 billion as at end-October 2024, from
GH¢19.5 billion as at end-October 2023 (y/y growth of -37.7%). In relative terms, however, contingent
liabilities as a percentage of total liabilities declined marginally to 8.3 percent in October 2024, from
8.4 percent in October 2023.

5.2.3 Asset Quality
The banking industry’s asset quality weakened during the period under review, evidenced by the
increase in NPL ratio to 22.7 percent in October 2024, from 18.3 percent in October 2023. When
adjusted for the fully provisioned loan loss category, the industry’s NPL ratio increased to 9.4 percent
from 6.4 percent during the same review period. The rise in the NPL ratio was attributable to the higher
growth in the NPL stock (59.1% year-on-year growth) relative to the growth in total loans (28.5% year-
on-year growth) during the reference period. The build-up in the industry’s NPL stock to GH¢21.5
billion in October 2024, from GH¢13.5 billion in October 2023, continued to reflect the spillover of the
2022 macroeconomic challenges on the sector.

The private sector was the largest recipient of the industry’s credit and accounted for the largest share
of NPLs as at end-October 2024. The proportion of NPLs attributable to the private sector increased
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marginally from 94.8 percent in October 2023 to 96.0 percent in October 2024, while that of the public
sector declined from 5.2 percent in October 2023 to 4.0 at end-October 2024.

The increase in NPL ratios among sectors was broad-based with all but one sector recording increases
in October 2024 compared to the same period in October 2023. The transportation, storage and
communication sector recorded the highest year-on-year increase in NPL ratio (to 49.4% from 27.3%),
followed by the agriculture, forestry and fishing sector (to 44.7% from 37.4%). The construction sector
had the third highest NPL ratio although it was the sole sector to record an improvement in its NPL
ratio (to 32.2% from 36.9%). The mining and quarrying sector recorded the lowest NPL ratio (12.0%
in October 2024, up from 4.1% in October 2023).

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

5.3.1 Liquidity Indicators
The industry’s liquidity position remained strong in October 2024, with improvements in both core and
broad measures following the increase in the CRR requirement. The ratio of core liquid assets (mainly
cash and due from banks) to total deposits increased to 49.3 percent in October 2024 from 34.0 percent
in October 2023, while core liquid assets to total assets ratio increased to 37.2 percent from 26.3 percent.
The ratio of broad liquid assets to total deposits also increased to 91.7 percent from 85.7 percent, while
the broad liquid assets to total assets ratio increased to 69.3 percent from 66.5 percent over the same
review period.
Solvency (%)
18.0
8.0
2.0
CAR (w/o Reliefs)
Efficiency Indicators (%)


Operational Cost to total assets (RHS)
Asset Quality
Adjusted NPL Ratio (%)
SUB-STD (GH¢m)
Profitability (%)


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5.3.2 Capital Adequacy Ratio
The industry’s solvency position, measured by the Capital Adequacy Ratio (CAR), improved to 11.1
percent in October 2024, from 7.3 percent in October 2023, on account of the rebound in profitability
following the DDEP implementation, as well as the ongoing recapitalisation of the sector. When the
DDEP regulatory reliefs are taken into account, the CAR increased to 14.3 percent in October 2024
from 13.4 percent in October 2023.

5.3.3 Profitability
The banking industry remained profitable, posting a higher profit-before-tax (PBT) of GH¢13.2 billion
and a higher profit-after-tax (PAT) of GH¢8.5 billion for the first ten months of 2024 compared to the
same period in 2023. Growth in PBT, however, moderated to 18.2 percent in October 2024 from 64.3
percent in October 2023 while PAT growth declined to 19.9 percent from 60.4 percent over the same
comparative period.

Largely, all income lines grew but at a slower pace in October 2024 compared to the same period last
year. Net interest income picked up by 18.3 percent to GH¢20.7 billion, lower than the corresponding
growth of 36.5 percent in October 2023. In year-on-year terms, interest income improved by 20.2
percent to GH¢31.3 billion in October 2024, up from GH¢26.0 billion in October 2023. Interest
expenses also improved to GH¢10.6 billion in October 2024, up from GH¢8.5 billion in October 2023,
representing a growth rate of 24.0 percent, relative to the 26.9 percent growth recorded in October 2023.
The slowdown in growth in net interest income was attributable to the lower lending rates and lower
rates on money market instruments in October 2024 compared to October 2023.

Figure 5.3: Composition of Income, Cost and Borrowings


Source: Bank of Ghana
Composition of Banks' Income (%)


Composition of Cost (%)


Banks' External Borrowing by Maturity (% of
Total)


Banks' Borrowing by Source (% of Total)


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Net fees and commissions recorded a slower growth of 26.0 percent, from 29.3 percent a year ago, while
other income rose by 4.9 percent (to GH¢4.3 million from GH¢4.1 billion), compared to the increase of
91.2 percent in October 2023. These developments resulted in a 14.4 percent growth in the industry’s
net operating income in October 2024, compared with the 47.8 percent growth recorded in October
2023.

The cost lines also recorded similar increases in October 2024 but at lower growth rates compared to
the same period in 2023. The industry’s operating expenses grew by 21.0 percent in October 2024,
compared to 34.9 percent in 2023, on the back of higher growth in staff costs and other operating
(administrative) expenses. Provisions for depreciation, bad debt and impairment losses on financial
assets went up by 1.0 percent in October 2024, compared to the 9.5 percent increase recorded in October
2023.

(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 profit-before-tax and
profit-after-tax, respectively. The ROE declined to 31.2 percent in October 2024 from 36.3 percent in
October 2023 and the ROA also decreased to 5.0 percent from 5.5 percent during the same reference
period.

(b) Interest Margin and Spread
Interest spreads for the banking sector widened to 10.8 percent in October 2024, from 10.4 percent in
October 2023. The increase in spreads was on the back of a moderate decline in interest payable to 4.8
percent, from 5.0 percent a year earlier, while gross yields rose marginally to 15.6 percent in October
2024, from 15.4 percent a year ago. The interest margin to total assets ratio and interest margin to gross
income ratio also fell to 5.6 percent and 51.3 percent, respectively, from 6.8 percent and 51.6 percent
during the period under review. The ratio of gross income to total assets (asset utilisation) declined to
11.0 percent in October 2024 from 13.2 percent in October 2023, while the profitability ratio increased
marginally to 21.1 percent from 20.9 percent.

(c) Composition of Banks’ Income
Income from investments remained the largest component of banks’ total income in October 2024, with
its share growing to 41.6 percent, from 41.2 percent in October 2023. The share of interest income from
loans, also rose to 35.9 percent from 35.6 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
11.1 percent, while the share of income from other sources declined to 10.7 percent from 12.2 percent.

5.3.4 Operational Efficiency
The industry remained broadly efficient, on the back of the slowdown in growth of operating expenses
during the period under review. The cost-to-income ratio improved marginally to 78.9 percent in
October 2024 from 79.1 percent in October 2023, while the cost-to-total assets ratio improved to 8.7
percent, from 10.4 percent in the same reference period. The operational cost-to-total assets ratio also
went down to 5.8 percent in October 2024 from 5.8 percent in October 2023, while the ratio of
operational cost to total income declined to 52.7 percent from 53.9 percent.
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5.3.5 Banks’ Counterparty Relationships
Total offshore balances shot up significantly by 125.7 percent to GH¢38.8 billion in October 2024,
compared to the 4.6 percent growth recorded in the previous year, driven by growth in both nostro
balances and placements. Nostro balances grew by 176.6 percent in October 2024, compared with a
contraction of 21.5 percent in October 2023. Growth in industry placements was also higher at 90.8
percent in October 2024, compared to the growth of 36.0 percent during the same period last year.
Accordingly, the ratio of offshore balances to net worth increased to 102.2 percent in October 2024,
from 67.7 percent in October 2023.

The share of banks’ external borrowings in total borrowings declined to 21.9 percent in October 2024,
from 36.6 percent in October 2023, while the share of domestic borrowings increased to 78.1 percent
from 63.4 percent over the same reference period. Banks’ external borrowings were tilted towards short-
term instruments, as the share of short-term borrowings in total external borrowings increased to 54.6
percent in October 2024 from 27.6 percent in October 2023, while the share of long-term borrowings
declined to 45.4 percent from 72.4 percent.

5.4 Credit Conditions Survey
Results of the October 2024 Credit Conditions Survey indicated a net tightening in the overall stance
on loans to enterprises in September and October 2024, on the back of a net tightening stance on all
components of enterprise loans during the review period. Banks projected that their overall stance on
enterprise loans would tighten further in the next two months, from net tightening in all components of
enterprise loans except for loans to small and medium enterprises.

The overall credit stance on loans to households, on the other hand, eased during the October 2024
survey round, from a net ease in all components of household loans, namely loans for house purchase,
and consumer credit and other lending. Over the next two months, banks project a net tightening in the
overall stance on loans to households, which will be reflected in loans for house purchases and consumer
credit.

The October 2024 survey further indicated an increase in overall demand for enterprise loans from net
increases in all components of enterprise loans. Banks project a net decrease in corporate loans in the
next two months, driven by net decreases in the demand for all categories of enterprise loans. Credit
demand by households, however, softened between September and October 2024, from a net decline in
the demand for loans for house purchase and consumer credit and other lending. Over the next two
months, however, banks project an increase in the demand for both consumer credit and loans for house
purchases to drive an increase in the overall demand for household loans.
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Figure 5.4: Credit Conditions Survey Results


Source: Bank of Ghana


5.5 Conclusion and Outlook
The banking sector’s performance in October 2024 was strong and continued to signal a recovery from
the 2022 macroeconomic crisis. Asset growth was robust, evidenced by sustained increases in deposits
and other funding sources. The industry’s CAR improved in October 2024 relative to October 2023,
reflecting the rebound in profitability following the DDEP implementation, as well as the ongoing
recapitalisation of the sector. The banking sector also recorded improvements in liquidity and efficiency
during the review period. Asset quality concerns, however, remained a risk to the outlook, with the
potential to erode some of the gains the sector has made. Overall, the industry’s outlook remains stable,
contingent on the recapitalisation of the sector by the end of December 2025, implementation of
rigorous credit risk underwriting standards, and intensification of loan recovery efforts to address asset
quality concerns in the sector.
Index, a rise denotes tightening
Index, a rise denotes tightening

35.00
30.00

25.00

20.00

15.00

10.00

5.00

-
-10
(5.00)
Small and Medium Enterprises
Overall Credit Stance for Enterprises
Long term enterprise loans
Large Enterprises
Short term enterprise loans


Loan for house purchase
Loan for consumer credit
Overall Household demand for loans
Households
Corporates
Households
Corporates
NPR (%)
NPR (%)
NPR (%)
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6. Price Developments

6.0 Highlights
Recent price developments show some sluggishness in the pace of disinflation. Since the last MPC
meeting, headline inflation readings for September and October point to upticks driven by food price
increases. Overall, headline inflation which stood at 20.4 percent in August, rose to 21.5 percent in
September and then further to 22.1 percent in October 2024. The rise in inflation has largely been
driven by food price pressures and some exchange rate pass-through effects from previous depreciation
of the currency. On a year-on-year basis, however, the inflation rate of 22.1 percent for October 2024
reflects an ease in inflationary conditions from the rate of 35.1 percent recorded in October 2023.


6.1 Domestic Inflation
Recent price developments show some sluggishness in the pace of disinflation. Headline inflation
picked up to 22.1 percent in October, from 21.5 percent in September and 20.4 percent in August 2024,
following five months of consistent disinflation. The upticks were primarily driven by food price
pressures and some exchange rate pass-through effects from previous depreciation of the currency. On
a year-on-year basis, however, the inflation rate of 22.1 percent for October 2024 reflects an ease in
inflationary conditions from the rate of 35.1 percent recorded in October 2023.

Food inflation increased to 22.8 percent in October, from 22.1 percent in September and 19.1 percent
in August 2024. The increase in food inflation was broadly attributed to adverse weather conditions that
likely affected agricultural yields and a higher demand for food products as the harvest season
transitioned. Non-food inflation edged down to 20.9 percent in September, before inching up to 21.5
percent in October, same as the level observed in August 2024.

Core inflation has eased considerably over the year. However, recent trends point to some underlying
inflationary pressures consistent with current inflation developments. Excluding the prices of energy
and utility items from the consumer basket, the Bank’s main measure of core inflation climbed to 21.4
percent in October 2024 from 19.4 percent in August 2024. Core inflation, however, declined by 14.0
percentage points since October 2023.

Figure 6.1: Headline Inflation
Figure 6.2: Headline vs Core Inflation (%)
Headline
Lower Band

Core 1 (Excluding Fuel, and Utilities)
Headline Inflation

Upper Band

Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Jul-23
Oct-23
Jan-24
Apr-24
Jul-24
Oct-24
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Jul-23
Oct-23
Jan-24
Apr-24
Jul-24
Oct-24
Source: GSS and Bank of Ghana Staff Calculations
Source: GSS and Bank of Ghana Staff Calculations
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-1
-2
-3
Month-on-month inflation for October 2024 slowed significantly to 0.9 percent, from 2.8 percent in the
previous month, driven mainly by food inflation. While monthly food inflation fell sharply to 0.3
percent in October from 4.2 percent in September 2024, monthly non-food inflation edged down to 1.4
percent from 1.6 percent over the same period.

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


Jan-

Feb-

Mar-

Apr-

May
-23
Jun-

Jul-

Aug-

Sep-

Oct-

Nov-

Dec-

Jan-

Feb-

Mar-

Apr-

May
-24
Jun-

Jul-

Aug-

Sep-

Oct-

Headline

Food

Non-food


Source: Ghana Statistical Service

A disaggregation of the Consumer Price Index by sub-groups shows a broad increase in inflation across
the basket between August 2024 and October 2024. However, compared to a year ago, inflation has
slowed broadly across the basket.

Table 6.1 CPI Components

Source: Ghana Statistical Service
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7.2 Inflation Risk Assessment and Outlook
Headline inflation declined to 20.4 percent in August 2024, from a height of 25.8 percent at the end of
March 2024. However, in September 2024, headline inflation rose to 21.5 percent, marking the first
increase after five months of consistent decline, and further edged up to 22.1 percent in October 2024.
The Bank’s main measure of core inflation has also picked up from 19.4 percent in August 2024 to 21.4
percent in October 2024. The recent developments in inflation have largely been occasioned by steep
price increases in food items this year, coupled with a fast-paced depreciating currency earlier in the
year and upward adjustments in fuel prices and utility tariffs. This has altered the inflation trajectory
and stalled the disinflation process. Inflation projections show a slightly elevated profile.

Inflation projections show a slightly elevated profile driven by high and unstable food prices, pass-
through of previous exchange rate pressures, fuel prices and utility tariff adjustments. The price
increases in food items have been steep in the course of the year and together with a fast-paced
depreciating currency earlier on in the year have altered the inflation trajectory and stalled the
disinflation process. At the time of the last MPC meeting, average inflation forecast a year ahead which
stood at 19.0 percent has increased slightly to 20.1 percent at this forecast round. The horizon for
inflation to get back within the target band of 6-10 percent has slightly shifted forward to Q42025 from
the original forecast period of Q32025. In the near-term, strengthening of the currency will augur well
for future price developments. Under the circumstances, the Monetary Policy Committee decided to
keep the policy rate unchanged at 27 percent.

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

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

Bank of Ghana

Commercial Banks

2 Net Domestic Assets


ow: Claims on government (net)


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

BOG OMO Sterilisation Acc.

5 Total Liquidity (M2+)


ow: Broad Money Supply (M2)


ow: Foreign Currency Deposits(¢million)

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

9 Net Domestic Assets


ow: Claims on government (net)


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


ow: BOG OMO Sterilisation Acc.

12 Total Liquidity (M2+)


Broad Money Supply (M2)


Foreign Currency Deposits (FCDs)

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

16 Net Domestic Assets


o/w: Claims on government (net)

18 Broad Money(M2+)

Annual per cent contribution to money growth
19 Net Foreign Assets

20 NDA

21 Total Liquidity (M2+)

Memorandum items
22 Reserve Money

23 NFA ($million)

24 Currency ratio

25 FCD/M2+

26 FCD/Total Deposit

27 RM multiplier

Source: Bank of Ghana Staff Calculations

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

2 Net Domestic Assets ( NDA)

of which:

ow: Claims on government (net)


Claims on DMB's (net)
(5679.6) (4057.4)
(14904.9) (9878.4)
(16020.1) (13451.5) (19716.9) (18523.3) (26897.1) (21593.3)

OMO Sterilisation Account.
(5699.8) (7725.5)
(37864.8) (24795.4) (22605.9) (16244.5) (21158.6) (26026.8) (21138.2) (21570.9)
6 Reserve Money ( RM)


ow:Currency


DMB's reserves


Non-Bank deposits

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

11 Net Domestic Assets


ow: Claims on government (net)


Claims on DMB's (net)


OMO Sterilisation Account.

15 Reserve Money ( RM)


ow:Currency

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

18 Net Domestic Assets ( NDA)


o/w: Claims on government (net)

20 Reserve Money ( RM)

Annual per cent contribution
21 Net Foreign Assets

22 Net Domestic Assets ( NDA)

23 RM growth ( y-o-y)

Source: Bank of Ghana Staff Calculations
PUBLIC
PUBLIC

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

Investments

Net Advances

Others

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

Total Borrowings

Shareholders' Funds

Other Liabilities

Source: Bank of Ghana Staff Calculations

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

Private Sector
72,851.57 67,410.86 80,318.06 86,842.39
-7.5
28.8
- Private Enterprises
55,763.72 48,687.99 58,327.82 64,183.22
-12.7
31.8
o/w Foreign

Indigenous
45,160.25 45,690.71 54,319.21 59,384.58
1.2
30.0
- Households
14,773.68 17,284.45 20,189.70 21,085.05
17.0
22.0
Gross Loans

Source: Bank of Ghana Staff Calculations


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

Growth (y-o-y)

% of Total Liabilities

Source: Bank of Ghana Staff Calculations
PUBLIC
PUBLIC

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

i. Government

ii. Public Institutions

iii. Public Enterprises

b. Private Sector

i. Private Enterprises

o/w Foreign

Indigeneous

ii. Households

iii. Others

Source: Bank of Ghana Staff Calculations


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

Liquid Assets (Broad) -(GH¢'million)

Liquid Assets to total deposits (Core)-%

Liquid Assets to total deposits (Broad)- %

Liquid assets to total assets (Core)- %

Liquid assets to total assets (Broad)- %

Source: Bank of Ghana Staff Calculations


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

Interest Payable

Spread

Asset Utilitisation

Interest Margin to Total Assets

Interest Margin to Gross income

Profitability Ratio

Return On Equity (%) after tax

Return On Assets (%) before tax

Source: Bank of Ghana Staff Calculations
PUBLIC
PUBLIC

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

Interest Expenses

Net Interest Income

Fees and Commissions (Net)

Other Income

Operating Income

Operating Expenses

Staff Cost (deduct)

Other operating Expenses

Net Operating Income

Total Provision (Loan losses, Depreciation & others)

Income Before Tax

Tax

Net Income

Gross Income

Source: Bank of Ghana Staff Calculations


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

Annual Growth in Offshore balances (%)

Annual Growth in Nostro Balances (%)

Annual Growth in Placement (%)

Source: Bank of Ghana Staff Calculations
PUBLIC
PUBLIC

Table A.11: Headline Inflation
PUBLIC