In his final State of the Nation Address on January 3, 2025, President Nana Addo Dankwa Akufo-Addo asserted that Ghana’s economy is robust, citing a rebound to pre-COVID-19 growth levels.
He highlighted Gross International Reserves nearing $8 billion and significant GDP growth: 4.8% in Q1 2024, 7% in Q2, and 7.2% in Q3. Additionally, private sector credit saw a nominal increase of 28.87% in October 2024, a substantial rise from the -7.5% recorded in the same period of 2023.
The President also noted improvements in external balances, with a surplus of 2.6% of GDP in the first nine months of 2024, compared to a deficit of 6.6% in 2016. The trade balance showed a surplus of $3.85 billion, contrasting with a $1.8 billion deficit in 2016. Inflation decreased from 54% in December 2022 to 23% in November 2024, with declining food prices contributing to reduced living costs.
Despite these positive indicators, some economists describe the growth as “fragile,” urging long-term strategies to address underlying economic weaknesses.
Professor John Gatsi, Dean of the University of Cape Coast Business School, emphasized that recent growth has not substantially benefited citizens. He recommended enhancing fiscal discipline, aligning policies across ministries, and strengthening revenue mobilization institutions.
Similarly, Professor Patrick Asuming of the University of Ghana Business School noted persistent challenges, including high food inflation and living costs, suggesting that economic relief for Ghanaians may require more time.
