The private sector credit-to-Gross Domestic Product (GDP) gap remained negative as of the end of August 2025, the Bank of Ghana disclosed in its September 2025 Monetary Policy Report.

Indeed, it is at an all-time low.

The private sector credit-to-GDP gap is another measure of macro-financial risk. A positive credit-to-GDP gap indicates that total private sector credit extension relative to the size of the economy is above its long-term trend and vice versa.

According to the Central Bank, Ghana’s credit-to-GDP remains negative and declining, suggesting the need for measures to promote credit delivery to support the real economy.

Meanwhile, the soundness of the banking sector continues to improve as at August 2025.

According to the Bank of Ghana, the Banking Sector Soundness Index was significantly above the long-term trend, nearing the pre-DDEP level.

This reflects improving solvency positions, adequate liquidity and strong earnings performance.

The non-performing loans ratio, though marginally improved, remained elevated.

That notwithstanding, the report said the ongoing macroeconomic recovery, supported by the implementation by banks on how to reduce Non-Performing Loans (NPLs), should help moderate the build-up of new non-performing loans and improve overall asset quality.