The banks total credit to the private sector and public institutions dipped to GH¢4.68 billion in June 2025 from GH¢11.35 billion recorded in June 2024.

The decrease in credit flows was largely due to a decline in credit to the public sector.

According to the July 2025 Monetary Policy Report of the Bank of Ghana, credit flows to the private sector declined to GH¢6.690 billion in June 2025 from GH¢11,690.77 million recorded in the corresponding period of 2024.

The decreased flow of credit to the private sector was on the back of a shift to the purchase of both Government and Bank of Ghana securities by the banks, with a sustainable impact.

The report stated that the private sector credit accounted for 95.05% of the flow in total outstanding credit in June 2025, relative to 92.40% recorded in the corresponding period of 2024.

The top five sectors with a significant share of credit flows are services (76.53%); commerce and finance (17.65%); electricity, gas and water (6.52%); manufacturing (4.55%); and agriculture, forestry and fisheries (4.12%).

The outstanding credit to the private sector at the end of June 2025 was GH¢84.752 billion, compared with GH¢78.061 billion recorded in June 2024.

In real terms, however, private sector credit contracted by 4.48%% relative to 4.18% contraction, over the same comparative period.

The growth in real private sector credit declined slightly below its trend during the review period.