Ghana’s Business Confidence Rises in August as Economic Outlook Brightens and Borrowing Costs Ease
Business confidence in Ghana surged in August 2025, signaling renewed optimism among firms about the nation’s economic direction. According to the Bank of Ghana’s September 2025 Monetary Policy Report, the Business Confidence Index climbed to 107.5, up from 105.5 in June. The improvement reflects stronger short-term performance and growing belief among business leaders that the country’s macroeconomic environment is stabilizing.
The report also noted that consumer confidence remained strong, standing at 116.9, only slightly below the 119.2 recorded in June. Despite a marginal dip, households continue to show resilience and faith in the economy’s recovery, suggesting that consumer spending and sentiment remain key pillars supporting growth.
In addition to improved confidence levels, the Purchasing Managers’ Index (PMI)—a key measure of business activity—rose modestly to 50.8 in August from 50.2 in July. This uptick indicates expanding business activity driven largely by higher new orders, reflecting growing demand across key sectors such as manufacturing, trade, and services.
Market analysts attribute this positive momentum partly to the Bank of Ghana’s recent 350-basis-point rate cut, which lowered the monetary policy rate to 21.5 percent. The move is expected to reduce borrowing costs, encourage private sector lending, and boost investment activity heading into the final quarter of the year. Lower interest rates typically translate to more accessible credit for businesses, stimulating production and job creation.
However, experts caution that sustaining this upward trajectory will require fiscal discipline, stable inflation, and affordable financing options for growth-oriented firms. “Confidence is building, but maintaining momentum depends on consistent policy implementation and cost control,” one analyst said. With Ghana’s economy showing signs of resilience, stakeholders are optimistic that 2025 could mark a turning point for sustained business recovery and investor confidence.
source: citi newsroom