Ghana’s economy showed tangible signs of recovery in 2025 under President John Dramani Mahama’s administration, with falling inflation, a stronger Cedi, and improved public finances. Yet, assessment by the Ghana Center for Democratic Development (CDD-Ghana) warns that much of the country’s progress remains fragile, with one-third of young Ghanaians still unemployed or out of school.
According to the report, key macroeconomic indicators improved significantly. Fuel prices fell by 4–8%, commercial transport fares dropped by 15%, and food inflation declined sharply from 28.3% in January 2025 to 4.9% in December. The national debt-to-GDP ratio also fell from 61.8% to 45%, supported by debt restructuring and fiscal consolidation.
“Ghanaians are feeling relief at the pump and in the markets, but this is only the first step,” the report notes. “Economic stability has been achieved, but it is built on a fragile foundation.”
The assessment highlights that much of the Cedi’s strength is linked to the sale of gold reserves through the government-backed Ghana Gold Board (GoldBod), rather than a structural boost in domestic production. While GoldBod has successfully formalized small-scale gold mining and increased exports, the initiative risks worsening environmental problems, including water pollution from illegal mining sites.
Job creation showed some progress, with roughly 333,000 new jobs recorded between January and September 2025, helping to reduce the national unemployment rate from nearly 15% to 12.8%. However, over 67% of jobs are in the informal sector, leaving many workers vulnerable. Among youth aged 15–24, about one in three remains unemployed, and 21% are neither in education, employment, nor training (NEET).
“The growth we are seeing is not yet inclusive,” the report warns. “Young Ghanaians and unskilled workers are not benefiting proportionately from the recovery.”
CDD-Ghana’s findings underline that while the Mahama administration’s first year has stabilized the economy, long-term success depends on moving beyond gold-backed fixes and temporary relief measures. The report calls for accelerated implementation of the 24-Hour Economy Policy and investments in manufacturing, agro-processing, and public services to generate sustainable employment, particularly for the youth.
The assessment concludes that Ghana’s fiscal gains could be quickly undone if the government does not address structural deficits, revenue mobilization challenges, and environmental risks. The upcoming debt repayments of GH₵20 billion in 2026 and GH₵50.3 billion in 2027 are highlighted as critical tests of the administration’s financial discipline and strategic planning.
