Will Ghana’s economy expand in 2025?

Ghana's economic landscape has been under scrutiny following the release of data by the Ghana Statistical Service, indicating a 5.7 per cent growth in the full year of 2024. However, concerns were raised as growth in the fourth quarter decelerated to 3.6 per cent from the previous quarter's 7.2 per cent, mainly driven by a slowdown in the Industry sector. To shed light on these developments, John Gatsi, Dean at the University of Cape Coast School of Business, provided insights during an interview. Gatsi highlighted that while the challenges in the economy were expected, there is a need to focus on inclusive growth moving forward. He emphasized the importance of enhancing growth momentum in sectors such as services, industry, and agriculture to ensure a more rewarding economic environment. Looking ahead, the focus shifted to the Finance Minister's upcoming presentation of the 2025 budget proposal to Parliament. Amid projections by the IMF of a 4.4 per cent GDP growth in 2025, the discussion revolved around Ghana's potential to sustain previous growth levels. Gatsi expressed confidence in the country's capacity to maintain growth momentum, citing new strategies aimed at improving efficiency, promoting business growth, and creating a more business-friendly environment. As the conversation delved into budget assumptions and economic stability, Gatsi underscored the significance of maintaining a stable macroeconomic environment to foster economic growth and job creation. He emphasized the need for effective implementation of recommendations from economic dialogues to support Ghana's long-term economic agenda. In addressing concerns around disinflation trends and fiscal consolidation, Gatsi commended the government's efforts to combat food inflation, expressing optimism that a drop in food prices would alleviate the cost of living pressures and contribute to overall economic improvement. As eyes remain fixed on engagements with the IMF and the outcomes of ongoing reforms, Gatsi expressed confidence in the government's measures to address inflationary pressures and drive economic stability. Amidst these discussions, a key theme emerged - the importance of sustainable economic policies to navigate challenges and steer Ghana towards robust growth and stability in the years ahead.