Ghana’s economy shows signs of stabilization in 2025 with a stronger cedi, declining inflation and improved credit ratings, but underlying vulnerabilities threaten the sustainability of these gains.
The cedi has appreciated over 30% against the dollar this year, trading at GH₵10.30, while inflation has fallen to 18.4% from its 2023 peak above 40%. These improvements follow strict fiscal measures and an IMF-backed reform program that helped secure credit rating upgrades from Fitch and S&P.
First quarter GDP growth of 5.3% reflects broad-based recovery across agriculture, ICT and retail sectors. “We’re seeing more reliable income streams, though conditions remain fragile for small businesses,” noted an Accra-based economist who requested anonymity due to private sector affiliations. The Ghana Revenue Authority’s digital tax collection system and reduced export taxes on artisanal gold have boosted government revenues, with formal gold exports reaching $11.6 billion in 2024.
However, significant challenges persist. The energy sector’s $2.5 billion debt to independent power producers continues straining public finances, while electricity reliability issues plague small businesses. Youth unemployment remains alarmingly high at 38.8%, with most employed youth in vulnerable work conditions. Illegal gold mining still causes environmental damage, with an estimated $11.4 billion lost to smuggling since 2019 according to SWISSAID reports.
Economists warn Ghana’s recovery remains precarious as the country enters an election cycle historically marked by fiscal slippage. “The test will be maintaining discipline through political pressures while addressing structural issues in energy and employment,” said a University of Ghana economics professor. With power sector reforms lagging and gold smuggling persisting, Ghana’s economic team faces mounting pressure to convert short-term stabilization into lasting transformation.
