Ghana’s credit-to-GDP gap remains negative, although it is gradually improving as private sector credit growth continues to recover, the Bank of Ghana (BoG) has disclosed.

According to the Central Bank’s latest Monetary Policy Report, the negative gap means private sector lending is still below its long-term trend, with economic growth currently outpacing credit expansion.

The BoG explained that the situation points to a period of credit contraction but also suggests limited risks from excessive borrowing. It noted that there is room for a measured increase in lending to support economic activity.

MIIF posts GH¢1.1 billion profit - Report

“Sustained favourable macroeconomic conditions, together with the continued resilience of the banking sector, remain critical to supporting the recovery in credit growth while preserving financial stability,” the report stated.

The Bank of Ghana also reported a broad moderation in macro-financial risks to the banking sector as of March 2026, supported by improved global and domestic economic conditions.

The Central Bank attributed the decline in risks to easing global lending conditions, lower inflation, improved financial conditions, and greater stability in the external environment.

Domestically, it said exchange rate stability, reduced inflationary pressures, stronger foreign reserves, and declining public debt levels contributed to improved economic stability and reduced vulnerabilities.

The BoG added that both corporate and household sectors recorded improvements in their ability to service debt, reflecting the broader recovery in economic conditions.

T-Bills remain oversubscribed as investors submit GH¢12.7bn in latest auction

However, it warned that the near-term outlook remains exposed to global uncertainties, particularly ongoing conflicts in the Middle East and their possible impact on import costs and the domestic economy.

The Bank stressed the need for continued coordination between monetary and fiscal authorities to manage potential shocks and sustain economic stability.

DR/SA

Inside the AI revolution that could save lives on Ghana's roads