Economic Outline

Economic Indicators

Ghana was consistently placed among Africa’s ten fastest-growing economies before the economic recession induced by falling oil prices and the COVID-19 pandemic (6.8% annually from 2008 to 2019). In 2022, Ghana's economy faced a severe macroeconomic crisis due to existing imbalances and external shocks. However, the economy regained traction in 2023 (+2.9%) when the authorities signed an IMF Extended Credit Facility worth approximately USD 3 billion. Growth estimates for 2024 were revised upwards to 4%, reflecting a strong first-half performance despite a tight fiscal and monetary policy environment, elevated interest rates dampening private consumption and investment, and drought conditions affecting agricultural production. Over the medium term, growth is expected to strengthen as stabilization solidifies and reforms take effect. By 2026, growth is forecast to accelerate to around 5%, driven by stronger performance in non-extractive sectors, particularly agriculture and services, as well as favourable conditions in extractive industries, including small-scale gold mining and new oil reserves (World Bank).

Ghana has made significant progress towards economic stabilization, addressing severe macroeconomic imbalances that peaked in 2022. The country saw a surge in public debt due to fiscal responses to external shocks and loss of access to international financial markets, leading to debt distress, declining reserves, and rising inflation. In response, Ghana implemented major macroeconomic policy adjustments, including comprehensive debt restructuring and fiscal consolidation. The fiscal deficit for 2024 was revised down to 4.2% of GDP, reflecting nominal GDP adjustments and strong consolidation efforts. Over the medium term, the government plans to broaden the tax base and improve compliance by enhancing the regulatory framework and digitalizing service delivery. Amendments to the Fiscal Responsibility Act and the establishment of a Fiscal Council are expected to further strengthen fiscal discipline. Meanwhile, the debt-to-GDP ratio decreased marginally to 82.5% in 2024 (from 82.9% one year earlier) and is expected to follow a downward trend, reaching 76.1% by 2026 (IMF). Tight monetary policy and stable exchange rates helped reduce high inflation in 2023, from a peak of 54.1% in December 2022 to 23.2% by December 2023. However, disinflation slowed in 2024, with inflation estimated at 23.8%.

Ghanaian households have faced challenges due to high inflation and a decelerating economy. Projections by the World Bank indicate that poverty rates are expected to rise until 2026, peaking at 31.5% in 2025—levels last seen in the late 2000s—before decreasing to 30.6%. At the low-middle income line, rates may reach 55.1% by 2026. This trend reflects limited growth in services and agriculture, sectors that employ many poor and vulnerable households, as well as rising prices outpacing income growth for the poorest. According to the same source, the unemployment rate in the country was around 3.1% in 2023 (latest data available).

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