EM Advisory projects modest depreciation amid economic headwinds
The Ghanaian cedi is expected to experience a modest decline in value in 2026, according to a recent forecast by EM Advisory, raising concerns for businesses, importers, and everyday consumers.
“Our projections indicate a gradual depreciation driven by external pressures and domestic fiscal dynamics,” the report stated.
WHAT THIS MEANS FOR GHANA
- Importers may face higher costs for foreign goods
- Consumers could see slight price increases on imported products
- Exporters might benefit from more competitive pricing abroad
FACTORS DRIVING THE DEPRECIATION
- Global economic trends and currency fluctuations
- Domestic fiscal discipline and government spending patterns
- Inflationary pressures and market demand for foreign currency
REACTIONS FROM ECONOMISTS
- Analysts stress the need for prudent fiscal and monetary policies
- Businesses are advised to hedge against currency risk
- Consumers urged to plan for potential increases in imported goods
THE BIGGER PICTURE
The cedi’s projected slide highlights:
- The interconnectedness of global and local economic factors
- The importance of sound economic policies to maintain currency stability
- How Ghana’s financial landscape may adjust in the coming year
“A modest depreciation is manageable if proactive measures are taken now,” economists warned.
