Ghana’s fiscal policy stance was “more expansionary than expected” in 2024, Bank of Ghana Governor Johnson Asiama has said.

Briefing journalists on Friday, 28 March 2025 following the 123rd regular meeting of the Monetary Policy Committee (MPC) held in the week to assess recent economic developments and risks to the inflation outlook, Dr Asiama said the 2024 fiscal deficit, on commitment basis, was 7.9 per cent of GDP against a target of 3.8 per cent of GDP, on the back of higher expenditures than target.

This notwithstanding, the Governor added that early indications from banking sector data suggest some improvements in fiscal performance in early 2025.

He said this, along with the commitment to fiscal consolidation presented in the 2025 budget, should support the fiscal outlook.

Also, Dr Asiama announced that the ratio of public debt declined supported by the debt restructuring.

He said the expansionary fiscal stance in 2024 “has created significant fiscal impulses, and a liquidity overhang that needs to be carefully managed.”

The strong liquidity conditions, Dr Asiama warned, “could spill over into other segments of the economy and derail the disinflation path.”