Ghana’s economy grew by 5.7% in 2024, according to the Ghana Statistical Service (GSS), despite a slowdown in the final quarter of the year. This growth rate is higher than 2.9% in 2023, 3.8% in 2022, 5% in 2021 and 0.5% in the Covid year of 2020.
The country’s gross domestic product (GDP) growth in the fourth quarter was 3.6% year-on-year, a significant drop from the revised 7.5% recorded in the third quarter of 2024. The slowdown was attributed to a weaker performance in the industry sector, which only expanded by 0.2%.
Growth in the fourth quarter was mainly driven by the services sector, which grew by 6.3%, and the agriculture sector, which saw a 2.9% rise, said Government Statistician Samuel Kobina Annim. These two sectors were the primary contributors to overall economic growth, compensating for the sluggish performance of the industry sector.
The West African nation is emerging from one of its worst economic crises in decades, exacerbated by disruptions in the crucial cocoa and gold industries, which are significant contributors to the country’s export earnings. Ghana has faced challenges in stabilizing its economy, with the government implementing several fiscal measures to boost growth and improve key sectors.
Consumer inflation, which has been a pressing concern for Ghana, slowed for the second consecutive month in February 2025. The inflation rate dropped to 23.1%, down from 23.5% in January. While this is a positive sign for the economy, inflation remains well above the Bank of Ghana’s target of 8%, with an allowable margin of 2 percentage points on either side. The high inflation has put pressure on consumers and businesses alike, driving up the cost of goods and services across the country.
The Bank of Ghana and the government have continued to work on various economic policies aimed at tackling inflation, stabilizing the currency, and enhancing the business environment to support long-term growth. Despite the challenges, the country’s services and agriculture sectors have remained resilient, playing a critical role in sustaining growth during a period of economic recovery.
As Ghana moves forward in 2025, it will be critical for the government to address structural issues in the industrial sector and improve macroeconomic stability. The performance of key sectors like cocoa, gold, and oil will also be essential in sustaining growth and achieving the government’s economic targets.
