Accra: Ghana's economy recorded significant improvement in 2024, driven largely by growth in the industrial sector, particularly construction and gold production. However, experts warn that fiscal challenges persist despite signs of stability.
According to Ghana News Agency, the 2024 edition of the State of the Ghanaian Economy Report (SGER) was launched at the Institute of Statistical, Social and Economic Research (ISSER) on Tuesday. Professor Robert Darko Osei, the Director of ISSER at the University of Ghana, stated that the growth observed last year was commendable, though the 2025 outlook appeared more moderate.
Prof. Osei explained that the industrial sector's strong performance had propelled growth, but noted that fiscal consolidation was coming at a cost, especially in reduced capital investment and slower expansion. He highlighted that while fiscal prudence in 2025 had yielded positive results, there was a need for greater efficiency in public spending and smarter investment prioritization to sustain growth and create more fiscal space.
On revenue mobilization, Prof. Osei remarked that Ghana's heavy reliance on the informal sector limited the tax base, cautioning against overburdening existing taxpayers. He called for a review of tax exemptions and procurement practices, stressing that improving expenditure efficiency was the quickest way to create fiscal space in the short term.
Touching on macroeconomic stability, Prof. Osei highlighted the cedi's strong performance, falling inflation, and rising foreign reserves, estimated at about 12 billion dollars, as positive indicators. He, however, urged stronger institutional checks and a revitalized Fiscal Responsibility Act (Act 982) with enforcement powers to sustain discipline.
On the global front, Prof. Osei noted that falling commodity prices projected by the World Bank could have mixed effects, lowering fuel costs but also reducing export earnings. He recommended greater value addition and strategic management of gold reserves to cushion the economy against shocks.
Supporting the assessment, Professor Ebo Turkson of the University of Ghana's Department of Economics described 2024 as one of Ghana's most stable macroeconomic periods in recent years. He cited strong cedi performance, lower debt levels, and improved investor confidence. Prof. Turkson noted that Ghana's debt-to-GDP ratio had dropped to around 45 percent, with reserves and the balance of payments improving. Fiscal deficits were expected to stay within the five percent threshold as government continued to rein in spending.
Prof. Turkson attributed the progress to better coordination between the Ministry of Finance and the Bank of Ghana, adding that declining interest rates could stimulate private sector credit and growth. However, he urged the government to push for structural transformation to sustain the gains, warning that reliance on commodities such as gold remained risky.
The State of the Ghanaian Economy Report is ISSER's flagship publication, providing annual analyses of Ghana's macroeconomic performance, fiscal trends, and sectoral developments to guide policymakers, researchers, and the public.