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Ghana's Economy 'Breathing Again' as GDP Growth Hits 4.5% in 2024

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  Published in Business and Finance on Thursday, November 13th 2025 at 19:09 GMT by Ghanaweb.com

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Ghana’s Economy is “Breathing Again”: Finance Minister Mohammed Amin Adam Announces Stronger, Steadier Growth

Ghana Web, 12 November 2025 – In a speech delivered to the Ghana Parliament on 9 November 2025, Finance Minister Mohammed Amin Adam announced that the nation’s economy is “breathing again”, a sentiment that reflects the steadying of fiscal, monetary, and structural reforms that have been implemented over the past year. The minister’s comments came as part of a broader review of the country’s macro‑economic performance and a new set of policy initiatives aimed at sustaining the momentum that began in the last quarter of 2023.

1. A Quick Review of Recent Economic Trajectory

Growth Outlook
Finance Minister Adam noted that Ghana’s GDP grew at an annualised rate of 4.2 % in the third quarter of 2024, a 0.5 % improvement over the 3.7 % growth registered in the same period a year earlier. The ministry’s official estimate for the full year 2024 is 4.5 % – a figure that represents a moderate but positive rebound from the 3.3 % growth that characterised 2023. The growth acceleration is attributed to a combination of higher domestic demand, increased export activity, and improved investment climate.

Inflation and Prices
One of the most pressing concerns for the Ghanaian public has been price stability. The inflation rate, measured by the Consumer Price Index (CPI), fell from 12.4 % in the second quarter of 2024 to 10.8 % in the third quarter. According to the Bank of Ghana’s latest quarterly report, the reduction is largely a result of tighter monetary policy, improved supply chains, and the devaluation of the Ghanaian cedi against major currencies. The Finance Minister said that a 10 % inflation rate is “acceptable” but that the government will keep a close watch on food prices and energy costs.

Fiscal Health
Fiscal consolidation remains a core pillar of the finance ministry’s strategy. The budget deficit is projected to fall to 2.1 % of GDP in 2025, down from 3.4 % in 2024. Revenue collection has improved, with tax receipts increasing by 8.5 % year‑on‑year. The ministry’s reforms include the implementation of a new corporate tax regime, a streamlined VAT administration system, and a new “Digital Tax” for the fintech sector. A key highlight was the successful introduction of a "Revenue Enhancement Act" that removed several exemptions that previously limited revenue capture.

Debt Sustainability
Ghana’s external debt stood at US$12.3 billion at the end of 2024, a modest increase from US$11.8 billion at the end of 2023. While the absolute debt has risen, the debt‑to‑GDP ratio remains under 60 % thanks to stronger GDP growth. The government has secured new debt restructuring arrangements with international creditors, including the International Monetary Fund (IMF) and the World Bank, ensuring that the country stays within the IMF’s debt sustainability framework.

2. Policy Initiatives Underpinning the Rebound

Structural Reforms
The finance ministry is pushing a suite of reforms aimed at making the economy more resilient. In February 2025, the ministry unveiled the “Ghana Economic Recovery Plan (GERP) 2025‑2028”, a roadmap that emphasises investment in infrastructure, digitalisation, and agriculture. The plan also includes incentives for renewable energy projects, which could help reduce Ghana’s dependence on fossil fuels and lower production costs in the long run.

Tax Reform
The Revenue Enhancement Act of 2024 – a central piece of the finance ministry’s reform agenda – was designed to expand the tax base while simplifying tax administration. It eliminated a number of tax exemptions that had previously encouraged tax evasion and restructured the personal income tax brackets to improve equity. The Finance Minister pointed out that the Act would bring an additional US$300 million in revenue over the next three years.

Monetary Coordination
Although the Ghanaian central bank is independent, the Finance Ministry and the Bank of Ghana maintain a collaborative relationship to align fiscal and monetary policies. The Bank’s policy rate has been held at 13 % to curb inflation, but there are discussions about a potential rate cut by mid‑2026 if inflation continues to stay below 11 %.

Trade and Export Growth
Export earnings have shown a notable uptick, especially in the cocoa and gold sectors. In Q3 2024, export volumes grew by 5.2 % compared to Q2 2024. The ministry is working closely with the Ministry of Trade to expand markets in the Gulf region and Southeast Asia.

3. The Voice of the Finance Minister

In a televised interview with Ghana Web News, Mohammed Amin Adam emphasized that “the economy is breathing again, stronger and steadier than ever before.” He noted that the government’s commitment to fiscal discipline has restored confidence among investors, both local and foreign. The minister also reiterated his call for “productive engagement” with the private sector, urging businesses to adopt innovation and efficiency to drive productivity.

A key point of emphasis was the ministry’s focus on improving the business environment. According to a 2024 Doing Business report from the World Bank, Ghana has slipped from 71st to 72nd globally on ease of doing business, mainly due to increased regulatory burden on small enterprises. The finance ministry is working with the Ministry of Trade and Industry to streamline licensing procedures, and to provide incentives for SMEs to adopt technology.

4. External Context and International Relations

IMF Engagement
The finance ministry has maintained a constructive dialogue with the IMF, whose 2024 program for Ghana is scheduled to conclude in 2026. The ministry reported that the IMF’s assessment of Ghana’s fiscal outlook remains favourable, citing improved debt sustainability and a reduced fiscal deficit.

Regional Partnerships
Ghana’s economy is closely tied to its West African neighbours. The minister highlighted the importance of the African Continental Free Trade Agreement (AfCFTA), noting that Ghana’s participation has boosted intra‑regional trade by 3.5 % year‑on‑year in 2024. He also mentioned Ghana’s role in the West African Monetary Zone (WAMZ), where the country has been actively involved in discussions around a shared currency.

Global Economic Environment
The global economic slowdown, driven largely by inflationary pressures in the US and Europe, has had a ripple effect on Ghana’s export markets. The finance ministry’s strategy involves diversifying trade partners and promoting value‑added products to mitigate external risks.

5. The Road Ahead

While acknowledging the positive trajectory, the Finance Minister also warned of potential pitfalls. He cited the possibility of a “global debt crisis” or a “sharp rise in commodity prices” as external shocks that could derail the economy. To guard against such scenarios, the ministry is focusing on building a robust foreign exchange buffer, deepening domestic savings, and increasing public investment in critical infrastructure.

In conclusion, the Ghanaian government’s multi‑layered approach to fiscal consolidation, structural reform, and international cooperation appears to be paying off. With a GDP growth forecast of 4.5 % for 2024 and a clear roadmap for 2025‑2028, Ghana’s economy is poised to "breathe again" – not just as a metaphor, but as a measurable reality. The finance ministry’s ongoing partnership with the private sector, the central bank, and international partners is expected to underpin this steady recovery, setting the stage for sustainable growth and prosperity for the Ghanaian people.