Ghana’s economy is outperforming expectations with one of the fastest inflation recoveries in recent years, signaling renewed stability following months of fiscal and monetary reforms.
Official data from the Ghana Statistical Service shows that headline inflation fell to 21.8% in October 2025, down from 54.1% at the start of 2024. This marks the country’s most significant year-on-year decline in over a decade. Analysts at Bloomberg noted that the disinflation trend has outpaced projections from both the International Monetary Fund (IMF) and the World Bank, which had expected inflation to ease more gradually.
According to the Bank of Ghana, the drop in inflation is attributed to tighter monetary policy, improved food supply, and relative exchange rate stability following a series of fiscal consolidation measures. “Our coordinated policies are beginning to yield tangible results, and we expect inflation to fall below 20% by early 2026,” said Governor Ernest Addison.
The government’s reform program, backed by a $3 billion IMF support package, has helped restore investor confidence and boost foreign reserves. As reported by Reuters, the Ghanaian cedi has also stabilized against the U.S. dollar, further anchoring price expectations and lowering import costs.
Economists say Ghana’s performance could position it among Africa’s most resilient economies in 2025, as it continues to defy earlier forecasts of prolonged economic distress.
