Govt’s 2025 inflation target ‘a little aggressive’ – Economist

Economist Professor Patrick Asuming has described the government's 2025 end-year inflation target of 11.9% as “a little aggressive,” given Ghana’s struggle to lower inflation below 23% in 2024.

While acknowledging that the target is ambitious, he believes other macroeconomic goals, including GDP growth and international reserves, are achievable.

Inflation marginally declined to 23.1% in February 2025, driven by lower food prices. However, food inflation remains at 28.1%, while non-food inflation stands at 18.8%.

The 2025 budget sets five key macroeconomic targets, including a 4.4% real GDP growth rate, 5.3% non-oil GDP growth, a 1.5% primary balance surplus, and at least three months of import cover in gross international reserves.

Professor Asuming believes that achieving the inflation target will require aggressive fiscal and monetary policies.