Ghana’s economy showed resilience in 2024 with GDP growth reaching 5.7%, driven by a rebound in the industry sector, particularly mining and construction. However, fiscal challenges persisted, with a deficit of 7.7% of GDP due to election-related expenditures and revenue shortfalls. The banking sector exhibited a mixed performance, with strong asset growth fueled by increased liquidity but limited private credit expansion due to risk sensitivity. The external sector improved significantly, with a trade surplus, increased remittances, and higher FDI. Inflation decelerated to 13.7% in June 2025 following tighter monetary policy and improved macroeconomic conditions.
Ghana faces significant labor market challenges, including a mismatch between job creation and the growing workforce, weak labor demand in productive sectors, a mismatch between education levels and job availability, high job mobility but limited upward progression, and persistent gender disparities in access to better jobs. The economy’s reliance on natural resource-dependent, capital-intensive sectors has hindered structural transformation and job quality.
To address these challenges, the report recommends policies focusing on building physical and human capital, improving the enabling environment for the private sector, and mobilizing private capital. This includes infrastructure investments, enhancing education quality, addressing structural constraints on firm growth, and expanding access to finance. Additionally, the report emphasizes the need for aligning the macro-policy framework with long-term development goals and leveraging natural resource windfalls for development and economic diversification.
