Economic growth rebounds to 5.7% in 2024

Ghana's economy grew by 5.7% according to the latest figures released by the Ghana Statistical Service. 

This represents a significant improvement over the 2023's modest 3.1% expansion, suggesting the country may be turning the corner after recent economic challenges.

The 2024 GDP growth rate is almost two times the 2.8% growth projected in the 2024 budget. 

Even more promising was the non-oil GDP growth, which surged from 3.6% to 6%, indicating that economic gains are increasingly diversified beyond the extractive sector.

This broader-based growth provides a more sustainable foundation for Ghana's economic future.

The services sector continued its dominance as the primary economic engine, contributing nearly half (47%) of the country's GDP in 2024.

Industrial activity maintained its position as the second-largest GDP contributor at 30.8%, while agriculture accounted for 22.2% of economic output. 

Quarterly growth 

However, the year ended on a cautionary note as fourth-quarter growth slowed to 3.6%, lower than the 5.1% recorded in the same period in 2023. 

This deceleration raises questions about whether momentum can be maintained into 2025.

The fourth-quarter slowdown contrasts sharply with the robust performance seen earlier in the year, particularly the impressive 7.5% growth achieved in the third quarter. 

First-quarter growth had also been solid at 5.1%, suggesting that economic headwinds intensified as the year progressed.

For ordinary Ghanaians, the critical question remains whether this improved economic performance will translate into tangible benefits in daily life, including job creation, wage growth and improved public services. 

Despite the encouraging annual figures, persistent inflation and currency pressures continue to impact household purchasing power.

Economic challenges 

Ghana has faced significant economic headwinds over the last four years, navigating a complex web of domestic and external challenges that have tested its resilience. 

Following a period of robust growth in the early 2010s, when Ghana was hailed as one of Africa's fastest-growing economies, the country has encountered a series of difficulties that dampened its economic momentum.

A key challenge has been Ghana's mounting public debt burden, with debt-to-GDP ratio exceeding 90%, pushing Ghana into debt distress and necessitating discussions with creditors and the International Monetary Fund (IMF). 

This debt crisis culminated in December 2022 when Ghana suspended payments on most of its external debt, including Eurobonds, commercial loans and bilateral debt.

Inflation has been another persistent problem, reaching crisis levels in recent years. In 2022, inflation soared to 54% at its peak, severely eroding purchasing power and disproportionately affecting lower-income households. 

The Ghanaian cedi has also experienced significant depreciation, particularly acute in 2022 when it lost over 50% of its value against the US dollar. 
Ghana's GDP growth patterns have reflected these challenges. After averaging around 7% growth between 2010 and 2019, economic expansion slowed markedly.

The country has since recorded economic growth rates of 0.4% in 2020; 5.4% in 2021; 3.7% in 2022 and 3.1% in 2023.