Ghana’s economic recovery started before 2025 – IPPA tells gov’t

The Institute of Public Policy and Accountability (IPPA) says Ghana’s macroeconomic recovery did not begin in 2025 but had already started earlier as a result of reforms carried out in previous years.

According to the institute, all major macroeconomic indicators showed strong improvement in 2024.

It noted that the public debt-to-GDP ratio had already fallen significantly from 78.5% in 2021 to 61.8% in 2024.

GDP growth increased from 0.5% in 2020 to 5.7% in 2024.

Gross international reserves also rose from US$4.8 billion in 2016 to nearly US$9 billion by December 2024, while inflation dropped from 31.9% in 2022 to 22.9% by the end of 2024.

In its review of the 2026 Budget, IPPA, led by Kwasi Nyame-Baafi commended the government for maintaining policy consistency under the IMF-supported programme.

The institute explained that continued fiscal consolidation, debt restructuring, and strong monetary coordination were key to stabilising the economy.

It added that these efforts contributed to further gains in 2025, with real GDP growth rising to 6.3%, inflation falling sharply from 23.8% in 2024 to 8.0% in 2025, and public debt declining from 69% to 45% of GDP, progress that, according to IPPA, had already begun before 2025.

However, IPPA argued that the government’s theme, “Resetting for growth, jobs and economic transformation,” did not meet expectations.

It said the macroeconomic targets for 2026 reflect modest ambition and are unlikely to drive significant job creation or meaningful economic transformation.

The institute also raised concerns about weaknesses in budget design and fiscal credibility.

It pointed out the absence of a coherent implementation framework for key policy initiatives and noted persistent challenges with capital expenditure execution, warning that many government commitments may end up underfunded or unfulfilled.

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