Ghana to record end-year inflation of 15.0% in 2024 – IMF

The International Monetary Fund has projected that Ghana will experience a significant cooling of its economy, with average inflation expected to settle at 19.5% for 2024 and drop further to 11.5% in 2025.

According to the October 2024 World Economic Outlook, the year-end inflation rate for 2025 is estimated to reach 8.1%, which would represent the lowest level the country has seen since 2019.

This downward trajectory is anticipated to alleviate the high costs of housing and consumer goods, ultimately stimulating household spending and driving overall economic demand.

The Fund’s regional analysis suggests that Ghana, alongside Nigeria and Angola, will be a primary driver in reducing headline inflation across the sub-region through continued policy adjustments.

This optimistic forecast comes despite a brief surge in inflation to 21.5% in September 2024, which followed a significant 2.0% cut to the Bank of Ghana’s benchmark Monetary Policy Rate.

The IMF maintains that while global oil exporters may face higher price pressures, Ghana’s commitment to its structural reform program will likely keep inflation on a steady path toward single digits by the end of next year.