Ghana’s credit-to-GDP gap remained negative but continued to improve gradually, according to the Bank of Ghana’s Monetary Policy Report.
The central bank said the trend reflected a steady recovery in private-sector credit growth. A negative credit-to-GDP gap indicates that private-sector lending is growing more slowly than its long-term historical pattern, or that economic output is expanding faster than credit.
It can also signal a period of credit contraction. However, the Bank of Ghana said the continued negative gap suggested that the financial system faced limited vulnerabilities associated with excessive credit accumulation.
The report said there was scope for measured expansion in credit to support economic activity, provided that favourable macroeconomic conditions and banking-sector resilience were sustained.
Banking-sector conditions
As of the end of March 2026, macro-financial risks to the banking sector from global and domestic conditions had broadly moderated on a year-on-year basis, the Bank of Ghana said.
It attributed this to supportive conditions internationally and within Ghana. Globally, easing lending conditions and low inflation were said to have improved financial conditions and supported relative stability in the external environment.
Domestically, the central bank cited exchange-rate stability, low inflationary pressure, stronger reserve accumulation and declining public debt levels as factors that had improved macroeconomic stability and reduced systemic vulnerabilities.
Corporate and household borrowers also recorded improved capacity to service their debts, according to the report, reflecting the broader macroeconomic environment.
Outlook
The Bank of Ghana said the near-term outlook would be influenced by continuing conflict in the Middle East and its potential effects on import costs and the domestic economy.
It said close coordination between monetary and fiscal authorities would be needed to limit the possible impact of evolving global tensions on Ghana’s economy while maintaining financial stability.
