The credit-to-GDP gap remained negative, although it continued to show signs of gradual improvement, reflecting a steady recovery in private-sector credit growth, the Bank of Ghana has disclosed in its Monetary Policy Report.

This means that the total amount of private sector credit is growing slower than its historical long-term trend, or the economy's output is outpacing lending.

 It also typically indicates a period of credit contraction.

According to the Bank of Ghana, the persistence of the negative gap suggests limited systemic vulnerabilities from excessive credit accumulation and indicates the potential for measured credit expansion to support economic activity.

“Sustained favourable macroeconomic conditions, together with the continued resilience of the banking sector, remain critical to supporting the recovery in credit growth while preserving financial stability”.

Macro-Financial Risks

Meanwhile, as of the end of March 2026, macro-financial risks emanating from both the global and domestic macroeconomic environment to the banking sector broadly moderated, year-on-year, supporting the continued resilience and growth of the banking sector.

According to the Central Bank, the moderation in risks was underpinned by supportive global and domestic macro-financial conditions.

“Globally, easing lending conditions and low inflation contributed to improved financial conditions and relative stability in the external environment”.

On the domestic front, it said exchange rate stability, low inflationary pressures, strong reserve buildup, and declining public debt levels contributed to improved macroeconomic stability and reduced systemic vulnerabilities.

The corporate and household sectors recorded improvements in debt servicing capacity, reflecting improved macroeconomic conditions.

Looking ahead, the Bank said the near-term macro-financial outlook will be shaped by the ongoing conflicts in the Middle East and its broader implications on import costs and the domestic economy.

Therefore, it requires a strong coordination between the monetary and fiscal authorities to help mitigate the near-term impact of the evolving global tensions on the economy.