Ghana’s economy rebounds in 2024 despite inflation woes 

Ghana’s economy displayed a remarkable rebound in 2024, achieving a GDP growth rate of 7.3 percent in the third quarter, the highest in five years.  

This surge followed a challenging 2023, marked by high inflation that peaked at 39.23%. 

While inflation remains a concern, it has shown signs of cooling, easing from 26.4 percent in 2023 to 23 percent in third quarter of 2024.  

However, food inflation continues to impact vulnerable households significantly. 

The non-oil sector, a key driver of growth, averaged 6.2 percent growth in the first three quarters of 2024, a substantial improvement from 2.6 percent in the same period of 2023.  

This robust performance across quarters – 4.3 percent in Q1, 6.6 percent in Q2, and 7.3 percent in Q3 which positioned Ghana to exceed its projected GDP growth target under the IMF-supported programme.  

This level of growth is particularly noteworthy considering that economies undergoing debt restructuring typically experience more modest growth rates. 

The Domestic Debt Exchange Programme (DDEP), a cornerstone of Ghana’s economic recovery plan, aimed to restructure approximately $13 billion in domestic debt.  

While the programme faced criticism from some investors, the government reached an agreement with bondholders involving changes to interest rates, maturities, and in some cases, principal reductions. 

Furthermore, Ghana secured debt restructuring agreements with bilateral creditors such as France and China, amounting to $5.4 billion. 

Despite these positive developments, challenges remain. 

 Inflation, food security, and sustainable debt management continue to require careful attention.  

The success of the DDEP and its impact on investor confidence will be crucial in determining the long-term trajectory of Ghana’s economic recovery. 

Source: GNA