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West Africa Macroeconomic Update

In this economic bulletin, we have provided an update on three
major macroeconomic indicators in the month of March, in our West African

 Inflation in Ghana is on the decline while in Nigeria, consumerprices continue to rise like there is no tomorrow. As a result, the monetary policy stance adopted by both countries has differed. The Bank of Ghana left its benchmark interest rates unchanged at 29% per annum while the Central Bank of Nigeria raised interest rates further to 24.75% per annum. The economic growth trajectory of Ghana mirrored its West African counterpart, with Ghana recording a full year growth of 2.9% in 2023. Please refer to our GDP update on Nigeria released in February.


What to expect in the next 8 weeks

The anticipated accommodative monetary policy stance of the BoG
will be a major driver of GDP expansion in Ghana, coupled with increased
election-related government spending.

 Inflation expectations for the two countries will continue to move in divergent paths, with Ghana’s rate falling while Nigeria continues to climb the slippery upward slope. This will also influence the thrust of monetary policy which would be more rate cuts in Ghana as against rate hikes in Nigeria.

 The implications of the above are expatiated upon in our March economic bulletin. Kindly click on the link below for more insights.

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