Ghana’s economy showed notable signs of recovery in 2024, driven by strong industrial growth in construction and gold production, but fiscal and structural challenges persist, the Institute of Statistical, Social and Economic Research (ISSER) has cautioned.
Presenting the 2024 edition of the State of the Ghanaian Economy Report (SGER) at the University of Ghana on Tuesday, Professor Robert Darko Osei, Director of ISSER, described the country’s economic rebound as commendable, though the outlook for 2025 appeared moderate. He noted that the industrial sector had been the main driver of growth, yet fiscal consolidation efforts were constraining public investment and slowing expansion in key sectors.
Fiscal consolidation is good and necessary, but it comes with costs, Prof. Osei said. The country’s fiscal space remains constrained, and investment spending is still low, he observed.
He acknowledged that the government’s fiscal prudence had produced positive results, including lower deficits and improved discipline, but called for greater efficiency in public expenditure and more strategic investment prioritization to sustain growth.
On revenue mobilization, Prof. Osei noted that Ghana’s overreliance on the informal sector limited the tax base. He cautioned against overtaxing the same group of compliant taxpayers, urging reforms to expand coverage instead.
The challenge isn’t to get the same people to bleed to death with taxes, he said. It’s about expanding the base so more people can contribute.
He recommended a review of tax exemptions and public procurement practices, adding that improved expenditure efficiency was the fastest route to creating fiscal space in the short term.
Touching on macroeconomic indicators, the ISSER Director cited the Ghana cedi’s relative stability, declining inflation, and rising foreign reserves, estimated at around 12 billion dollars, as signs of renewed confidence in the economy.
He, however, urged stronger institutional oversight and the effective enforcement of the Fiscal Responsibility Act (Act 982) to preserve gains and prevent future fiscal slippages.
The economy is certainly on the mend, but we’re not out of the woods yet. We cannot afford to sleep, he cautioned.
Prof. Osei also noted that global trends, including projected declines in commodity prices, could have mixed implications for Ghana, as they would reduce fuel import costs while lowering export earnings.
He advised more investment in value addition and better management of gold reserves to cushion the economy against external shocks, noting the country’s overreliance on mineral exports, especially gold, which surged significantly in the past few months.
Supporting the findings, Professor Ebo Turkson of the University of Ghana’s Department of Economics described 2024 as one of the country’s most stable macroeconomic periods in recent years, citing stronger cedi performance, reduced debt levels, and improved investor confidence.
The Ghana cedi has emerged as the world’s best performing currency in 2025, appreciating nearly 50% against the US dollar since the start of the year. For the first time, we could see it appreciate year on year, Prof. Turkson said.
He added that Ghana’s debt to GDP ratio had declined to about 45 percent, with improvements in reserves and the balance of payments. Fiscal deficits were expected to remain within the five percent limit as the government continued efforts to manage expenditure.
Prof. Turkson credited the progress to improved coordination between the Ministry of Finance and the Bank of Ghana, noting that falling interest rates could encourage private sector credit growth.
He, however, urged policymakers to pursue structural transformation to sustain recovery, cautioning that continued dependence on commodities like gold posed long term risks.
We cannot depend on commodities to build resilience. This is the time to diversify production, support the 24 hour economy initiative, and expand infrastructure to drive industrialization, he said.
The State of the Ghanaian Economy Report is ISSER’s flagship annual publication, providing a comprehensive analysis of Ghana’s macroeconomic performance, fiscal trends, and sectoral developments to inform policy decisions and public discourse.
The report comes at a critical time, as Ghana continues its recovery from a debt crisis that saw the country restructure billions in domestic and international debt. The government finalized a restructuring agreement with its official creditors, as all 25 members of its Official Creditor Committee signed a memorandum of understanding, covering approximately $5.4 billion in bilateral debt. Ghana also reached a deal with over 90% of holders of its $13 billion Eurobond portfolio, marking a significant milestone in efforts to restore debt sustainability.
Ghana’s rise to become the sixth largest gold producer globally has had a transformative economic effect, with gold export revenue rising from $7.6 billion in 2023 to $11.6 billion in 2024. The Gold Board initiative, which mandated domestic gold purchases be settled in cedis prior to export, increased Ghana’s gold reserves from 9 tonnes in late 2023 to 31 tonnes currently.
Despite these gains, analysts warn that Ghana’s economic stability depends on maintaining fiscal discipline and avoiding complacency. The report recommends prudent borrowing, preferably on concessional terms, and stressed the need for efficiency in public spending to enhance growth and job creation.
