The Institute for Fiscal Studies (IFS) has expressed concern over the International Monetary Fund’s (IMF) latest projections indicating that Ghana’s economic growth will remain low between 4% and 5% until 2029.
The economic policy think tank described the projections as troubling, citing potential adverse effects on job creation and employment generation, especially among the youth.
Ghana’s economic growth has been significantly depressed since the onset of the fiscal and macroeconomic crisis in 2022. The country’s real Gross Domestic Product (GDP) growth rate stood at 3.8% in 2022 and further declined to 2.9% in 2023, far below the pre-crisis average. According to the IMF’s December 2024 projections, real GDP growth is expected to remain within the range of 4.0% to 5.0%, with an average of 4.4% from 2024 to 2029.
Should these projections hold, Ghana’s growth will stay well below its pre-crisis levels for the next five years, raising serious concerns about economic expansion and employment opportunities.
IFS has called on the incoming government to implement strategic interventions in the real sector to stimulate economic growth beyond the IMF’s projections. The think tank emphasized that a stagnant growth rate will not be sufficient to address Ghana’s growing unemployment crisis. However, recognizing the country’s weak fiscal position, IFS advised the government to focus on expenditure prioritization, directing resources towards sectors that can drive sustainable economic expansion.
The agriculture sector, in particular, was highlighted as a key area for investment. IFS recommended that the government channel funds into agriculture to enhance productivity, increase food security, and create employment opportunities. The sector has the potential to drive broad-based economic growth, reduce dependency on imports, and support industrialization efforts through value addition.
