Ato Forson Predicts Inflation Below 5% by End of 2026

Finance Minister Dr. Cassiel Ato Forson stated that inflation will not exceed 5% by the end of 2026. He spoke in an interview with Bloomberg in London. The minister anticipates inflation might rise in the coming months from its current 3.4%.

Global events such as developments in the Middle East and rising crude oil prices are expected to influence inflation. Dr. Forson mentioned the government has already put in place measures to stabilize the economy. These actions have helped the country manage recent economic shocks effectively. However, he expressed concern over escalating fuel prices. This could negatively impact the nation's balance of payments. It would require using more foreign currency from reserves to support the Ghanaian cedi. The minister also highlighted potential effects on fertiliser costs and farming outputs.

This inflation outlook follows projections in the 2026 Budget. That budget anticipated Ghana ending the year with a 4.8% growth rate. Dr. Forson indicated that current positive developments might push GDP growth higher. He specifically pointed to the oil and gas sector's recent improvements. These will likely boost Gross Domestic Product (GDP) figures by year-end. He plans to update these projections during the Mid-Year Budget Review in July 2026. This approach signals a commitment to adapting economic forecasts based on real-time data.

To ensure economic gains are sustained, the government plans to request a Policy Coordination Instrument (PCI). This follows the completion of the Enhanced Credit Facility with the International Monetary Fund (IMF). The PCI aims to reassure investors about the government's continued fiscal discipline. Dr. Forson believes this initiative will lead to an improved investment grade. He anticipates Ghana could reach a 'BBB' rating after its implementation. The minister also plans to unveil a New Economic Policy programme. This programme will be announced during the Mid-Year Budget Review. Its goal is to solidify recent economic progress and drive necessary reforms forward.

The government's proactive approach to economic management, particularly through fiscal discipline and strategic policy instruments, offers a path towards greater stability. Investors and markets will closely monitor the implementation of the New Economic Policy programme and the potential upgrade in Ghana's investment rating. The successful management of global price volatilities and their impact on local economies remains a key focus for decision-makers.