Government has made unprecedented efforts to address macroeconomic imbalances — BoG Governor

Bank of Ghana (BoG) Governor Dr. Ernest Addison has praised Ghanaian authorities for making "unprecedented efforts" to address macroeconomic imbalances, which are now starting to yield results.

Speaking at a joint press briefing with the Ministry of Finance and International Monetary Fund (IMF) on Monday, July 1, Dr. Addison said the authorities have made "unprecedented efforts to address macroeconomic imbalances."

He added that "today, the macroeconomic outlook is dramatically improving and there are clear signs of economic stabilisation; growth is surprising on the upside, inflation has fallen significantly, fiscal policy is consolidating, and foreign exchange reserve build-up has been robust."

Inflation has fallen sharply from over 50% at the beginning of 2023 to 23.1% currently, Dr. Addison noted.

“This was achieved with very effective monetary policy operations which were very costly to the balance sheet of the Bank but very necessary for the public good," he stated.

The central bank governor said foreign reserves have also risen considerably, with $917 million accumulated so far in 2024 compared to an IMF target of $463.8 million.

Dr. Addison acknowledged inflation remains higher than desired.

However, he expressed confidence that "the improving economic fundamentals, the strong accumulation of foreign exchange reserves under the gold for reserve programme, and the agreement with the Official Creditor Committee and sovereign bondholders on debt restructuring, should all in concert provide the basis for stability."