Ghanaians Remain Skeptical Despite Economic Gains

Ghana is experiencing a significant drop in inflation, but a surprising disconnect exists between the improving economic figures and the confidence levels of ordinary Ghanaians.

The Bank of Ghana’s latest Summary of Economic and Financial Data for November 2025 reveals a recovery on paper, yet public sentiment remains volatile. Inflation has plummeted from 23.8% in December 2024 to 6.3% in November 2025 – one of the most rapid disinflationary periods in recent history.

This decline extends to both food and non-food inflation. Food inflation decreased from 27.8% to 6.6% over the same period, while non-food inflation saw a reduction from 20.3% to 6.1%.

Despite these positive trends, consumer optimism hasn’t followed suit. The Bank of Ghana’s confidence indicators show a fluctuating public mood. “While the numbers are encouraging, we are not seeing a corresponding surge in confidence from households,” a source within the Bank of Ghana stated.

The Monetary Policy Rate has also been adjusted downwards, from 28.0% earlier in 2025 to 18% in November, aiming to boost business confidence by reducing borrowing costs. However, the impact has been limited.

The Consumer Confidence Index initially rose from 90.2 to 119.2, but subsequently fell back to 115.3. Business sentiment mirrored this pattern, with the Business Confidence Index climbing to 107.5 before declining to 106.5, despite the favourable inflation data.

This volatility suggests that while inflation is falling, Ghanaians are still grappling with the aftershocks of previous economic hardships, including a high cost of living and reduced purchasing power. There’s also a lingering uncertainty about the sustainability of these improvements.

Analysts believe expectations may be lagging behind reality. “After years of instability, it’s natural for Ghanaians to be cautious, even when official data paints a positive picture,” explained Dr. Kwame Addo, an economist at the University of Ghana. “It takes time to rebuild trust.”

The situation highlights that economic recovery and psychological recovery do not necessarily happen in tandem. While prices are slowing, the sense of security and financial stability among households is improving at a much slower pace.

If this trend persists, Ghana risks a scenario where macroeconomic improvements fail to translate into increased spending, investment, and economic growth, as public confidence remains restrained.

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