Ghana: Economic and Political Overview
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).
| Main Indicators | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) | 2027 (E) |
| GDP (billions USD) | 76.40 | 75.31 | 75.76 | 81.05 | 86.82 |
| GDP (Constant Prices, Annual % Change) | 2.9 | 3.1 | 4.4 | 4.9 | 5.0 |
| GDP per Capita (USD) | 2,322 | 2,232 | 2,189 | 2,284 | 2,385 |
| General Government Gross Debt (in % of GDP) | 82.9 | 82.5 | 79.5 | 76.1 | 72.5 |
| Inflation Rate (%) | 39.2 | 19.5 | 11.5 | 8.0 | 8.0 |
| Current Account (billions USD) | -1.10 | -1.87 | -1.50 | -1.62 | -1.87 |
| Current Account (in % of GDP) | -1.4 | -2.5 | -2.0 | -2.0 | -2.2 |
Source: IMF – World Economic Outlook Database, October 2021
Ghana, Africa’s largest gold producer, is rich in natural resources and benefits from fertile soil. Agriculture represents 21.1% of GDP and employs 35.4% of the country’s workforce (World Bank, latest data available). Arable lands cover approximately 57% of the country's total land area (FAO). Most of the cultivated lands (95%) consist of small and medium-sized farms (up to 10 hectares). Crops vary considerably depending on the region. In the forest zone (southwest), tree crops, including cocoa, oil palm, coffee, and rubber, are common. Maize, legumes, cocoyam or yam, with tobacco and cotton, are among the most harvested crops in the middle belt of the country. Tobacco and cotton are also harvested in the north of the country, in addition to sorghum, millet, cowpeas, and groundnuts. Ghana does not produce wheat, having to import it from overseas. While livestock production is important, particularly in the north, Ghana still imports meat and dairy products to meet demand.
Industry accounts for 29.5% of GDP and employs 17.79% of the workforce. The sector is dominated by mining, lumbering, light manufacturing, aluminium smelting, food processing, cement production, small commercial shipbuilding, and petroleum. Gold, bauxite, and manganese mining play a key role thanks to the country's rich subsoil resources. Rich bauxite reserves coupled with high hydro stocks provide strong potential for aluminium smelting. Ghana also has a relatively sophisticated automotive industry and exports cars to other parts of Africa. Moreover, the food processing industry, dominated by medium-scale enterprises, also plays a major role; while textile manufacturing includes ginneries and mills producing batik, wax cloth, fancy prints, and Kente cloth, with firms serving local and regional markets. The sector has shown strong growth in recent years. Overall, the manufacturing sector as a whole is estimated to account for 11% of GDP.
The service sector is the largest component of the economy comprising 42.5% of GDP and employing 46.9% of the workforce. The banking sector has developed and modernized in recent years but has more room to grow. In the past, the banking sector in Ghana was largely controlled by state-owned institutions and lacked significant competition. However, over the last decade, there has been a shift as certain state-owned banks underwent privatization through the government's Divestiture Implementation Program. Telecommunications is the main service sector due to rapid growth in mobile phone users and the emergence of mobile payment technologies. Ghana's digital, financial services, construction, education, and franchising industries are experiencing rapid growth (U.S. Trade Administration). According to data from the Ministry of Tourism, in the first half of 2024, the country recorded around 600,000 foreign visitors (+20% y-o-y), with tourism revenue estimated at USD 1.8 billion.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 35.4 | 17.7 | 46.9 |
| Value Added (in % of GDP) | 21.1 | 29.5 | 42.5 |
| Value Added (Annual % Change) | 4.5 | -1.2 | 5.5 |
Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
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