Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

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, but this trend has changed. After rebounding to 5.4% GDP in 2021, economic growth slowed down to 3.6% GDP in 2022, in the context of the global economic shock caused by the war in Ukraine. According to IMF estimates, GDP growth is expected to further decrease to 2.8% in 2023 before increasing to 3.9% GDP in 2024. Lower oil prices and production level, fiscal and debt vulnerabilities and a challenging external environment will impede growth prospects.

In 2022, Ghana’s economy, still recovering from the impact of the Covid-19 pandemic and the collapse in export revenues from oil and cocoa, was further hit by the consequences of the war in Ukraine. Public debt increased from 82.1% GDP in 2021 to 90.7% GDP in 2022, and investors’ concerns triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs (IMF). The debt is driven in part by exceptional energy and financial sector costs. Indeed, government arrears to the energy sector represent 1% of GDP each year (Coface). Debt interests payment weights heavily on the fiscal deficit, despite higher tax revenue and external demand for oil, gold and cocoa. Budget deficit decreased from -11.4% GDP in 2021 to -9.2% GDP in 2022, and while it is expected to further reduce, it will remain high in 2023 (-8.6% GDP), and 2024 (-8.9% GDP) (IMF). The price and supply-chain shocks caused by the war in Ukraine exacerbated the situation, leading to a large exchange rate depreciation, a surge in inflation and pressure on foreign exchange reserves (IMF). From 10% in 2021, inflation soared to 27.2% in 2022, and while declining, it is expected to remain very high in 2023 (20.9%) and 2024 (14.7%) (IMF). In December 2022, it reached 54.1% (Focus Economics). In December 2022, the IMF team reached staff-level agreement with the Ghanaian authorities on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of USD 3 billion. The program aims to restore macroeconomic stability and debt sustainability while laying the foundation for stronger and more inclusive growth. In February 2023, the government closed its domestic debt restructuring program, shifting maturities to 2028 from 2023 and reducing coupon rates (Focus Economics). Talks have been initiated with Paris Club members regarding external debt restructuring. According to IMF estimates, public debt will remain as high as 87.8% GDP in 2023 and 89.2% GDP in 2024. The Ghanaian authorities have committed to a wide-ranging economic reform program, which builds on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) (IMF). The government also remains committed to the Energy Sector Recovery Programme (2019-2023) established in collaboration with the World Bank.

Ghana is facing high inequalities, increasing poverty and unemployment. The country was ranked 133rd in the 2021 Human Development Index. According to World Bank estimates, unemployment rate in the country was around 3.9% in 2021.

Foreign Trade

Ghana is very open to foreign trade that represented 58% of GDP in 2021 (World Bank). The government wants to create an economic environment that facilitates the development of the private sector thus guarantying transparent trades and promoting competitiveness in foreign markets. Ghana mainly exports gold and other ore and gems, petroleum oil, cocoa, nuts, woods, fish, and vegetable oils. The country mainly imports machinery, vehicles, petroleum oils, iron, electrical products, plastics, cereals and other food products, medicines and capital goods (ITC, 2021).

Ghana is a member of the World Trade Organisation and of the ECOWAS. It has also signed numerous partnership agreements, including with the EU. The European Union also supports the Ghana “Beyond Aid” program aimed at reshaping trade dynamics between the country and developed economies. Customs duties are not high but they are applied to every imported product. Ghana is using the common external customs tariffs of the ECOWAS. The import of some products such as mercury soap, hazardous wastes or contaminated products is prohibited.

Ghana's main clients are China, Switzerland, India, South Africa, and the Netherlands. The Netherlands is its main client for horticultural products. Ghana's main suppliers are China (18.2% of total imports), the United States, the United Kingdom, India and Belgium (ITC, latest data available).
 
According to WTO data, in 2021 Ghana exported goods for a total value of USD 14.73 billion while it imported goods with a total value of USD 13.63 billion. Regarding services, Ghana exported USD 9.17 billion worth of services while it imported 12.34 billion worth of services. In March 2022, the merchandise trade surplus reached an all time high of USD 676.21 million (Bank of 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.