The Bank of Ghana (BOG) is flipping the script on economic pessimism, declaring that recovery is in full swing with business and consumer confidence on the rise. After months of turbulence, the latest indicators suggest a steady rebound, fueled by improved fiscal measures and growing investor optimism
Ghana‘s economic outlook continues to brighten as key indicators from the Bank of Ghana (BoG) point to a significant upturn in business and consumer confidence, alongside steady economic expansion.
The latest data from the BoG’s Composite Index of Economic Activity (CIEA) revealed a robust 5.7% year-on-year growth in January 2025, a substantial improvement from the 3.5% recorded in the same period of 2024. This growth was primarily driven by increased consumer spending, rising international trade activity, and a resurgence in private sector credit.
Recent confidence surveys conducted in February 2025 indicate a significant boost in both business and consumer sentiment. The findings suggest that optimism about an improved macroeconomic landscape is fueling greater economic participation and investment prospects.
Resurgence in Private Sector Credit
One of the most encouraging signs of recovery is the renewed momentum in private sector credit. The BoG reported a remarkable 26.9% annual growth in private sector credit in February 2025, a sharp contrast to the 5.1% recorded in February 2024. Even in real terms, credit growth stood at 3.1%, marking a significant turnaround from the 14.7% contraction experienced a year prior.
Outlook for 2025: Sustained Growth Amid Economic Optimism
As Ghana navigates its economic recovery, the BoG’s data signals a promising trajectory for businesses and consumers alike. The combination of increased credit availability, stronger consumption patterns, and heightened investor confidence sets a positive tone for the nation’s economic growth in the months ahead. Policymakers and industry players are expected to leverage these gains to drive further stability and expansion across key sectors.
