Backed by a USD 3 billion loan programme from the International Monetary Fund, the West African gold and cocoa producer is emerging from its worst economic crisis in a generation, having defaulted on most of its external borrowing in December 2022. Bank of Ghana Governor Ernest Addison told a news conference that inflation remained elevated, largely driven by food price movements, especially in the last quarter of the year. While the inflation outturn for the year 2024 deviated from the target, it is expected that the disinflation process will resume, contingent on renewed efforts at fiscal consolidation, which is anticipated in the new administration’s economic policies.

Ghana’s consumer inflation rose in December to 23.8% in annual terms, the highest rate in eight months. The central bank targets an inflation rate of 8%, with a margin of error of 2 percentage points on either side of that. Addison said the bank’s latest forecast showed it would take longer for inflation to return within the 6%-10% range.

President John Dramani Mahama, who staged a political comeback in December, has pledged to rapidly address growing discontent by boosting the economy and creating jobs. But his administration has yet to formally publish its economic policy plans or deliver a budget statement. Ghana’s parliament passed a provisional budget in early January to avert an unprecedented government shutdown.