Fiscal performance sees improvement – BoG Governor

Ghana's fiscal policy for 2024 was "more expansionary than expected," said Bank of Ghana Governor Johnson Asiama.

He briefed journalists on Friday, March 28, 2025. This followed the 123rd regular meeting of the Monetary Policy Committee (MPC). The meeting assessed recent economic developments and inflation risks.

Dr. Asiama noted that the fiscal deficit for 2024 was 7.9% of GDP. This is much higher than the target of 3.8% of GDP due to increased expenditures.

However, he mentioned early signs of improved fiscal performance in early 2025 from banking sector data. He believes this, along with the commitment to fiscal consolidation in the 2025 budget, will support future fiscal outlooks.

Additionally, Dr. Asiama announced a decline in the public debt ratio due to debt restructuring efforts. He cautioned that the expansionary fiscal stance in 2024 has created significant fiscal impulses and a liquidity overhang.

This liquidity situation needs careful management, he warned. Strong liquidity conditions could affect other parts of the economy and disrupt disinflation efforts.