Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

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, but this trend has changed. After rebounding to 5.4% GDP in 2021, economic growth slowed down to 3.6% GDP in 2022, in the context of the global economic shock caused by the war in Ukraine. According to IMF estimates, GDP growth is expected to further decrease to 2.8% in 2023 before increasing to 3.9% GDP in 2024. Lower oil prices and production level, fiscal and debt vulnerabilities and a challenging external environment will impede growth prospects.

In 2022, Ghana’s economy, still recovering from the impact of the Covid-19 pandemic and the collapse in export revenues from oil and cocoa, was further hit by the consequences of the war in Ukraine. Public debt increased from 82.1% GDP in 2021 to 90.7% GDP in 2022, and investors’ concerns triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs (IMF). The debt is driven in part by exceptional energy and financial sector costs. Indeed, government arrears to the energy sector represent 1% of GDP each year (Coface). Debt interests payment weights heavily on the fiscal deficit, despite higher tax revenue and external demand for oil, gold and cocoa. Budget deficit decreased from -11.4% GDP in 2021 to -9.2% GDP in 2022, and while it is expected to further reduce, it will remain high in 2023 (-8.6% GDP), and 2024 (-8.9% GDP) (IMF). The price and supply-chain shocks caused by the war in Ukraine exacerbated the situation, leading to a large exchange rate depreciation, a surge in inflation and pressure on foreign exchange reserves (IMF). From 10% in 2021, inflation soared to 27.2% in 2022, and while declining, it is expected to remain very high in 2023 (20.9%) and 2024 (14.7%) (IMF). In December 2022, it reached 54.1% (Focus Economics). In December 2022, the IMF team reached staff-level agreement with the Ghanaian authorities on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of USD 3 billion. The program aims to restore macroeconomic stability and debt sustainability while laying the foundation for stronger and more inclusive growth. In February 2023, the government closed its domestic debt restructuring program, shifting maturities to 2028 from 2023 and reducing coupon rates (Focus Economics). Talks have been initiated with Paris Club members regarding external debt restructuring. According to IMF estimates, public debt will remain as high as 87.8% GDP in 2023 and 89.2% GDP in 2024. The Ghanaian authorities have committed to a wide-ranging economic reform program, which builds on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) (IMF). The government also remains committed to the Energy Sector Recovery Programme (2019-2023) established in collaboration with the World Bank.

Ghana is facing high inequalities, increasing poverty and unemployment. The country was ranked 133rd in the 2021 Human Development Index. According to World Bank estimates, unemployment rate in the country was around 3.9% in 2021.

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