Fiscal discipline key to sustaining Ghana’s economic gains – BoG Governor

Bank of Ghana Governor Dr Johnson Asiama has emphasized the importance of fiscal discipline in maintaining Ghana's recent economic progress. He urged the government to continue with expenditure restraint and generate the necessary revenue to bolster the economy. Dr Asiama also highlighted the significance of prudent debt management and fiscal discipline in maintaining debt sustainability, bolstering investor confidence, and reducing fiscal risks to the overall economic outlook.

He made these remarks during a meeting with Managing Directors and heads of commercial banks at Bank Square in Accra. The Governor noted that Ghana's fiscal performance in the first quarter of 2026 had anchored macroeconomic stability, reflecting strong expenditure restraint despite revenue shortfalls, leading to better-than-targeted balances on a cash basis.

Furthermore, Dr Asiama discussed the enhancements in Ghana's external position, pointing out that gross international reserves had risen to US$12.9 billion by the end of June 2026, equating to 5.0 months of import cover. Despite recent challenges, such as fluctuations in the Middle East, the economy has continued to perform robustly, with real GDP expanding by 6.4% in the first quarter of 2026, up from 6.2% in the same period of 2025.

The growth was primarily attributed to the services and industrial sectors. The Composite Index of Economic Activity, according to Dr Asiama, indicates consistent and widespread momentum in economic activity. Regarding the issue of dud cheques, Dr Asiama expressed concern over the high level of non-compliance and called upon commercial banks to enhance their monitoring mechanisms, intensify customer engagement, and foster trust in the use of cheques as a payment method.

Moreover, the Bank of Ghana has intensified its efforts to combat unlicensed digital lending activities. The central bank has started releasing weekly lists of entities providing digital credit services without the necessary approval, and relevant law enforcement and regulatory agencies are taking further steps to remove non-compliant operators from the market.

Dr Asiama affirmed that the Bank of Ghana would continue to foster a regulatory and policy environment that supports the banking sector, providing the necessary regulatory and policy environment for a sound, resilient, and growth-oriented banking system.