Economist Professor Patrick Asuming has described the government’s 2025 end-year inflation target of 11.9% as “a little aggressive,” citing Ghana’s struggle to bring inflation below 23% in 2024.
He warns that achieving this target will require significant effort but believes other macroeconomic goals are within reach.
“The inflation target of 11.9%, it looks a little aggressive. We are currently just over 23% but you have to understand that we have really struggled throughout 2024 to reduce the inflation rate beneath the 22% mark. I think it will take a more aggressive policy.
“The Finance Minister says there will be both fiscal measures as well as monetary measures to try and achieve that purpose so we wait and see. The Gross International reserve target represents a reduction in what we achieved in 2024, also. You get the sense that it will be achievable. Overall, I think except the inflation target, which we have to work hard to get it, I think the rest look fairly achievable,” Professor Patrick Asuming told Citi Business News while reacting to the macroeconomic targets in 2025 budget statement presented by Finance Minister Dr. Cassiel Ato Forson.
Inflation rate eased marginally in February to 23.1%, down from 23.5% recorded in January 2025.
This marked the second consecutive decline this year. It was driven by a decline in food prices, according to the Ghana Statistical Service.
The drop was as a result of a reduction in food inflation, which stood at 28.1%, while non-food inflation remained at 18.8%.
Government for the for the 2025 fiscal year has meanwhile set five macroeconomic targets to achieve including overall real GDP growth of at least 4.4 percent, non-oil real GDP growth of at least 5.3 percent, end-period inflation rate of 11.9 percent, primary balance on commitment basis at a surplus of 1.5 percent of GDP and Gross International Reserves (including oil funds and encumbered/pledged assets) to cover not less than 3 months of imports.