Audio By Carbonatix
Ghana’s inflation will average 15% in 2025 and 10% in 2026, Fitch Ratings has revealed.
This will be down from 23% in 2024, helped by the large appreciation of the cedi since April 2025, a still tight monetary policy stance and fiscal consolidation.
According to the UK-based firm, the size of the pass-through of exchange rate appreciation is uncertain, but it believes it will rapidly contribute to a moderation in domestic inflation, backed up by lower oil prices and international food prices.
It also projected that the Bank of Ghana will start cutting its policy rate in July 2025.
Ghana's year-on-year inflation rate for May 2025 dropped to 18.4%, its lowest point since February 2022.
This marked a continued decrease for the fifth consecutive month, down from 21.2% in April 2025. The primary driver of this decline is a significant drop in transport fares, attributed to lower fuel prices, and a slowdown in the rate of increase for non-food items.
Resilient Growth
Meanwhile, Fitch said the real Gross Domestic Product (GDP) growth has proved resilient throughout the restructuring process, at 3.1% in 2023 and 5.7% in 2024.
“We anticipate growth will remain solid, at 4% in 2025 and 4.5% in 2026, on a rebound in agricultural output after a steep decline in cocoa production in recent years, and a continued expansion of the industrial and services sectors”, it added.
Latest Stories
-
NCA engages ISPS on licensing reclassification and review of fees
3 hours -
2nd Deputy BoG boss sounds alarm on digital fraudsters, calls for united front
3 hours -
Parliament renames key universities to reflect focus and location
3 hours -
GES, NADMO move to prevent future bee attacks after Anloga school tragedy
3 hours -
KGL does not operate or conduct 5/90 national lotto, but retails 5/90 national lotto – Razak Opoku
3 hours -
Parliament approves renaming of C.K. Tedam University to University of Technology and Applied Sciences, Navrongo
4 hours -
Former Jasikan MCE returns to Bawumia camp
4 hours -
Daily Insight for CEOs: The CEO’s role in stakeholder engagement and relationship management
4 hours -
Streetlight theft undermining Accra’s illumination effort – Regional Minister
4 hours -
Frequent use of emergency contraceptives could affect fertility, youth warned
4 hours -
Police arrest 8 suspects in Navrongo anti-crime sweep ahead of Christmas
5 hours -
KGL Foundation commissions toilet facility for Adukrom PRESEC
5 hours -
President Mahama pushes reparations, calls for united African front at diaspora summit
5 hours -
Over 2,800 crates of eggs sold at The Multimedia Group’s X’mas Egg Market as consumers express satisfaction
5 hours -
Police to enforce ban on unauthorised use of sirens and strobe lights
5 hours
