Ghana's inflation to remain above 44.7% until 2024 – AfDB report

Ghana’s inflation rate is expected to anchor above 44.7 percent until the year 2024, this is the projection from the African Development Bank.

The Bank in its recently released West Africa Economic Outlook Report further projected that the country’s interest rates will continue to hover above 25 percent.

The report noted that, “Within the West Africa region, inflation is projected to be highest in Ghana (45%), Nigeria (17%), Sierra Leone (27%) and the Gambia (12%). Except Nigeria, local currencies in the three other countries experienced double digit depreciation in 2022. This is expected to continue in the medium term.”

For the 2024 fiscal year, the AfDB maintains that Ghana’s inflation is expected to drop to about 20.4 percent while cautioning that the Bank of Ghana’s monetary policy rate could however hamper growth prospects.

“Therefore, amid already high policy rates (e.g., policy rate of 18% in Nigeria, 29% in Ghana and 19% in Sierra Leone), further rate hikes might do more harm than good to growth prospects,” the Bank said.

But to mitigate the current economic challenges in the country, the AfDB pointed out to measures including international financial assistance, enhanced fiscal consolidation, economic diversification, and private sector growth to propel the economy.

MA/NOQ

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