Ghana’s economy demonstrated remarkable resilience in 2024, with Gross Domestic Product (GDP) growth reaching 5.7 per cent, according to the World Bank Group’s 9th Economic Update for the country released in June.
The report, titled “Addressing Labour Market Challenges and Opportunities in Ghana’s Economic Landscape,” highlights a strong rebound driven primarily by the industrial sector and robust performance in services.
The positive trajectory was fuelled by a significant recovery in key industrial sub-sectors, particularly mining and construction. The services sector maintained its strong growth momentum, bolstered by activities in trade and transportation, while agriculture recorded mixed results.
Despite challenges in cocoa production due to adverse weather, the sector saw growth in crops, livestock, and fishing. Excluding oil and gas, non-oil GDP growth rose to 6 per cent, signalling a broad-based recovery and increased economic diversification.
On the expenditure side, the report notes a surge in domestic demand, largely driven by increased consumption and investment spending, including those linked to election-related activities.
The economic momentum continued into the first quarter of 2025, with a 5.3 per cent GDP growth rate. The World Bank attributes this performance to expansions in agriculture and services. However, the report cautions that this growth is occurring amid persistent fiscal and structural hurdles.
The industrial sector, meanwhile, slowed in Q1 2025 due to contractions in oil, gas, and mining. The report further warns that while Ghana has made notable progress in debt restructuring and fiscal consolidation, persistent fiscal deficits and high interest rates could pose risks to future stability.
The World Bank projects that GDP growth will slow to 3.9 per cent in 2025 as major fiscal adjustments take effect. It recommends that Ghana maintain reform momentum, with emphasis on robust fiscal discipline and structural reforms.
The update also focuses on Ghana’s labour market, stressing the importance of creating productive jobs for the country’s rapidly growing working-age population.
It calls for targeted strategies on youth employment, skills development, and private sector-led growth in high-potential sectors such as manufacturing and agro-processing to ensure a sustainable economic future.
Source: Myjoyonline
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