Ghana continues to break economic projections with the fastest inflation recovery in years

Recent figures indicate that Ghana’s current inflation rate stands at 8% compared to 9.4% in September.

This figure is also a far cry from the same period last year, when Ghana was in the midst of one of its worst economic crises in history.

The country’s inflation figure for October 2024 was 22.1% a four-month high at the time, as opposed to the current figure, which represents a four-year low.

Ghana’s October 2025 inflation was disclosed by Government Statistician Alhassan Iddrisu during a virtual briefing on Wednesday.

Ghana, the world’s second-largest producer of cocoa and Africa’s top exporter of bullion, benefited from high cocoa and gold prices, which have caused the cedi to rise versus the dollar by about 35% this year and helped reduce inflation, as seen on Bloomberg.

Johnson Asiama, the country’s central bank governor, revealed last week that inflation will probably end the year at less than 9.4%.

Following a record 350 basis-point cut to 21.5% in September, the dip provides more support for a policy rate reduction later in the month.

The current inflation drop is the 9th decline in a row, highlighting the country’s economic recovery under its new administration led by President John Mahama.

Since assuming office, President John Mahama’s administration has emphasized fiscal discipline, currency stability, and export growth as critical components of its economic plan.

Efforts to improve budgetary discipline, along with favorable external conditions, have allowed the economy to reset after years of instability.

For context, inflation declined to 18.4% in May from 21.2% in April, then to 13.7% in June, owing mostly to a jump in gold prices, which increased the country’s foreign exchange profits and helped stabilize the cedi.

A report in September showed that Ghana’s GDP expanded by 6.3% year on year in the second quarter of 2025, up from a revised 5.7% in the same period the previous year, according to data released by the Ghana Statistical Service.

The services sector, which grew by 9.9% during the quarter compared to just 2% growth the year before, was the main driver of the rebound.

Growth in agriculture and other service sectors drove a 7.8% increase in Ghana’s GDP, excluding oil. The resilience of agriculture provided a crucial cushion as oil production declined.

As Ghana’s economy recovers from its worst economic crisis in decades, these data represent a turning point.