Ghana‘s economy recorded marked improvement in 2024, driven mainly by strong growth in the industrial sector, particularly construction and gold production, according to the latest State of the Ghanaian Economy Report (SGER) launched on Tuesday by the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana.
Presenting the report, Professor Robert Darko Osei, Director of ISSER, described the 2024 growth as commendable but cautioned that the 2025 outlook appeared more moderate. He said the industrial sector’s robust performance had been central to the recovery, though fiscal consolidation efforts were weighing on capital investment and economic expansion.
“Fiscal consolidation is good and necessary, but it comes with costs. Our fiscal space remains constrained, and investment spending is still low,” Prof. Osei noted. He acknowledged that the government’s prudence had yielded stability but urged greater efficiency in public expenditure and smarter investment prioritisation to sustain momentum and create fiscal room.
Get the latest news, updates by joining our WhatsApp channel here: Join on WhatsApp.
On revenue mobilisation, he warned that Ghana’s narrow tax base, heavily reliant on the informal sector, limited fiscal flexibility. “The challenge is not to get the same people to bleed to death with taxes. It’s about expanding the base so more people can contribute,” he said, calling for a review of tax exemptions and procurement practices.
Touching on macroeconomic indicators, Prof. Osei highlighted the cedi’s strong performance, declining inflation, and foreign reserves estimated at about $12 billion as signs of progress. However, he cautioned that discipline must be institutionalised through stronger enforcement of the Fiscal Responsibility Act (Act 982). “The economy is certainly on the mend, but we are not out of the woods yet. We cannot afford to sleep,” he warned.
He also pointed to global risks, noting that projected declines in commodity prices could have mixed effects on Ghana’s economy, reducing fuel import costs but dampening export revenues. He urged the government to focus on value addition and strategic management of gold reserves to cushion against external shocks.
Supporting the analysis, Professor Ebo Turkson of the University of Ghana’s Department of Economics described 2024 as one of the most stable macroeconomic periods in recent years. He cited the cedi’s appreciation, lower debt levels, improved investor confidence, and narrowing fiscal deficits as evidence of progress.
“The Ghana cedi is the best-performing currency in the world this year, and for the first time, we could see it appreciate year-on-year,” Prof. Turkson stated. He said Ghana’s debt-to-GDP ratio had fallen to around 45 per cent, with rising reserves and an improved balance of payments. Fiscal deficits were projected to remain within the five per cent limit as the government sustained its spending discipline.
Prof. Turkson attributed the gains to better coordination between the Ministry of Finance and the Bank of Ghana, alongside declining interest rates that could encourage private sector credit growth. However, he warned that continued reliance on commodities such as gold remained risky, urging diversification through industrial expansion and the 24-hour economy initiative.
“We cannot depend on commodities to build resilience. This is the time to diversify production, support the 24-hour economy, and expand infrastructure to drive industrialisation,” he advised.
The State of the Ghanaian Economy Report remains ISSER’s flagship publication, providing annual analyses of Ghana’s macroeconomic performance, fiscal trends, and sectoral developments to inform policymakers, researchers, and the public.
