Economic Overview

Ghana was consistently placed among Africa’s ten fastest-growing economies before the economic recession induced by falling oil prices and the Covid-19 pandemic. In 2022, Ghana's economy faced a severe macroeconomic crisis due to existing imbalances and external shocks. The country's significant financing requirements and tightening financial conditions worsened concerns about debt sustainability. Capital outflows, coupled with tighter monetary policies in advanced economies, intensified pressure on the exchange rate. Additionally, monetary funding of the budget deficit led to high inflation rates. These factors disrupted the post-COVID-19 recovery, causing GDP growth to drop from 5.1% in 2021 to 3.1% in 2022. During the first half of 2023, GDP growth recovered to 3.2%, driven by robust expansion in services (6.3%) and agriculture (6.2%), while the industrial sector experienced a contraction of 2.2%. Due to a worse performance in the second part of the year, the IMF estimated the overall growth at only 1.2%. Nevertheless, the economy is expected to pick up this year (+2.7%) and in 2025 when growth should accelerate to 4.6%.

The deterioration of public finances, debt unsustainability, currency depreciation, and rampant inflation led Ghana to seek assistance from the IMF in July 2022. An Extended Credit Facility (ECF) of USD 3 billion over three years was granted to Ghana in May 2023, along with a rigorous reform program. Ghana has adopted a two-pronged approach to debt restructuring, completing a domestic debt exchange plan (DDEP) covering 47% of its public debt locally by September 2023, while suspending payment of external debt service (53% of public debt), including Eurobonds, commercial loans, and bilateral loans. This suspension is concurrent with negotiations within the G20 Common Framework led by the Paris Club. According to the recently passed 2024 Budget, the budget deficit is projected to reach 4.8% in 2024 (compared to -5% according to the IMF), down from 7.5% in 2023. In the medium term, the Government aims to achieve a budget deficit below 3% of GDP by 2027 (3.1% according to IMF estimates). Meanwhile, the debt-to-GDP ratio decreased to 84.9% in 2023 (from 92.4% one year earlier) and is expected to follow a downward trend, reaching 78.8% by 2025 (IMF). Inflation, which has been driven by food prices, remained elevated above 40% in 2023 but should gradually moderate to 23.2% this year and 11.5% in 2025.

Ghanaian households have faced challenges due to high inflation and a decelerating economy. Projections by the World Bank indicate that poverty will worsen by 2025, with the rate rising to almost 34% (according to the international poverty line), up from 27% in 2022. This trend aligns with a subdued growth outlook in services and agriculture and escalating prices. Despite significant inflation, the country's minimum wage has only risen by 10%, which is deemed inadequate considering the inflation rate. According to World Bank estimates, the unemployment rate in the country was around 3.5% in 2022 (latest data available).

Foreign Trade

Ghana maintains a highly open stance towards foreign trade, with trade accounting for approximately 71% of its GDP, according to the latest data from the World Bank. The government's objective is to foster an economic environment conducive to private sector development, transparent trade practices, and enhanced competitiveness in foreign markets. In terms of exports, Ghana's main commodities include gold (37%), petroleum oils (31.3%), cocoa beans and paste (13.4%), and manganese (2.1%). On the import side, the country's primary imports consist of motor vehicles (12.6%), rice (3.6%), cement (3.1%), and refined petroleum oil (2.3%), as per Comtrade data for 2022.

As a member of the World Trade Organization (WTO) and the Economic Community of West African States (ECOWAS), Ghana has engaged in various partnership agreements, including with the European Union (EU). The EU supports Ghana's "Beyond Aid" program, aimed at restructuring trade dynamics between Ghana and developed economies. Customs duties, while not excessively high, are applied to all imported products, following the common external customs tariffs of the ECOWAS. Ghana's top export destinations in 2022 were China (16.7%), Switzerland (14.7%), India (14.2%), South Africa (11.8%), and the Netherlands (5.8%). On the import side, the country's major import partners were China (18.2%), the United States (9.4%), the United Kingdom (6.6%), India (5.6%), and Belgium (5.1%), according to Comtrade data.

Data from the WTO indicates that in 2022, Ghana exported goods worth USD 17.5 billion and imported goods valued at USD 14.6 billion, marking increases of 18.8% and 7.2% year-on-year, respectively. However, while Ghana maintains a trade surplus in goods, it is a net importer of services. In 2022, service exports totaled USD 8.3 billion compared to service imports amounting to USD 11.8 billion.
In 2023, Ghana experienced a contraction in its favorable trade balance, which decreased by 10% to USD 2.6 billion, as reported by the Bank of Ghana. This decline was attributed to a 5% decrease in total exports, driven by an 8.7% decline in cocoa income and a 30% decrease in revenue from oil shipments.f Ghana).

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

For the general overview of the key economic policy responses to the COVID-19 pandemic (fiscal, monetary and macroeconomic) undertaken by the government of Ghana, please consult the country's dedicated section in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.