The Ministry of Finance has announced that Ghana has achieved significant economic recovery despite the ongoing global economic challenges and the nation’s ambitious debt restructuring programme. The recovery is attributed to strategic government policies aimed at stabilizing the economy, improving fiscal discipline, and implementing key structural reforms.
The global economy has been under strain from factors such as inflationary pressures, rising fuel prices, and disruptions in supply chains. However, Ghana’s economy has shown resilience by maintaining growth in key sectors such as agriculture, mining, and services.
This recovery has been driven by prudent economic management, focused government interventions, and support from multilateral institutions.
The Ministry highlighted that the Ghanaian economy is on the path to regaining macroeconomic stability, despite earlier projections of a challenging outlook due to the lingering effects of the COVID-19 pandemic and global inflation.
Inflation, which had reached record highs in 2022, has begun to decline as a result of monetary tightening and other fiscal measures taken by the government and the Bank of Ghana.
According to the latest GDP statistics released by Ghana Statistical Service (GSS) on Wednesday 18th September 2024, show that the Ghanaian economy is fast recovering amid global challenges and debt restructuring. The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that the government is pursuing under our IMF-supported Post-COVID-19 Programme for Economic Growth.
“Overall Real GDP growth for the first half of 2024 rebounded strongly, with year-on-year GDP growth averaging 5.8% for the period, significantly higher than the 2.9% recorded in the same period in 2023. The 2024 first half-year growth of 5.8% is supported by a 4.8% expansion in the economy in Q1 2024 and 6.9% in Q2 2024”, the statement highlighted.
“Non-Oil GDP growth for the first half of 2024 was equally robust with a growth rate of 5.6%, significantly higher than the 3.8% recorded in the first half year of 2023. The first half-year economic expansion is supported by Q1 growth of 4.3% and Q2 growth of 7.0%”.
The Ministry explained that the 6.9% growth recorded in the second quarter of 2024 is the highest quarterly GDP growth recorded in the last 5 years.
A key component of Ghana’s economic recovery strategy has been the successful implementation of a debt restructuring programme. The programme was initiated to address the country’s high debt-to-GDP ratio, which had reached unsustainable levels in recent years. By engaging in negotiations with international creditors, as well as executing domestic debt exchanges, the government has been able to reduce its debt burden while ensuring minimal disruption to the economy.
The Ministry of Finance has emphasized that the debt restructuring programme was critical for creating fiscal space, allowing the government to invest in growth-enhancing sectors such as infrastructure, education, and healthcare.
The Ministry also noted that creditor confidence in Ghana’s economy has increased, as evidenced by improved bond market performance and a positive outlook from international rating agencies.
Several sectors have played a pivotal role in Ghana’s economic recovery. The government’s “Planting for Food and Jobs” initiative has bolstered agricultural production, ensuring food security and export growth.
The mining sector, particularly gold production, has remained a strong contributor to GDP, benefiting from global commodity price increases. The services sector, including finance, telecommunications, and trade, has seen robust growth, supported by digital transformation efforts.
Looking ahead, the Ministry of Finance remains cautiously optimistic, acknowledging that while the recovery is promising, ongoing challenges such as global financial instability and geopolitical risks could pose threats to sustained growth. To mitigate these risks, the government plans to maintain fiscal discipline, improve revenue mobilization, and attract foreign direct investment (FDI) to support long-term development.
The Ministry also reaffirmed its commitment to ensuring that Ghana’s economic recovery remains inclusive, with efforts focused on job creation, poverty reduction, and reducing inequality.
“Government will continue to prioritise the restoration and sustenance of macroeconomic stability which is necessary for the promotion of our inclusive growth agenda. It is expected that the implementation of the government’s growth strategy including the Planting for Food and Jobs Phase 2 Programme, the SME Growth and Opportunity Programme, the 1 District 1 Factory Programme, and the Economic Enclave Programme under the Ghana CARES Programme will further consolidate the gains we are making in economic recovery to improve the living conditions of the Ghanaian people” the press statement concluded.
Ghana’s successful economic recovery amid global challenges highlights the government’s effective policy responses, particularly in managing the debt restructuring programme and prioritizing key growth sectors. With the economy showing signs of stability and growth, the Ministry of Finance is confident that Ghana is on track to build a more resilient and sustainable economic future.
