Ghana’s economic performance over the last two decades has been “a tale of highs and lows,” mirroring global trends, the Africa Center for Economic Transformation (ACET) Ghana Country Economic Outlook Transformation 2024 has revealed.
The report said the early 2000s Gross Domestic Product (GDP) growth was robust, peaking at 14% in 2011, nearly doubling GDP per capita and elevating Ghana to middle-income status.
However, this momentum was disrupted by the collapse of the commodity super-cycle in 2014–2015 and the COVID-19 pandemic, leading to the country’s first recession in 38 years in 2020.
“Recovery has since been constrained by a challenging macroeconomic environment, rising debt, and the effects of illegal mining. Despite episodes of growth, economic transformation has not met expectations. Industrial competitiveness, particularly in manufacturing, remains weak due to an unfavorable business environment and limited integration with other sectors”.
“Raw materials dominate exports (51.0%), followed by intermediate goods (43%), with minimal value addition and weak progress in technology-intensive manufacturing. Structural changes in the economy have also not significantly boosted productivity, despite transitioning of resources and labor from agriculture to other productivity sectors but of low quality and informal.”, It added.
ACET, however, said human well-being has seen steady improvement, with significant reductions in poverty over two decades.
However, inequality persists, compounded by high youth unemployment and a largely informal labor market.
To achieve sustained economic transformation, it urged the country to address policy incoherence, strengthen sectoral linkages, diversify exports through value addition, and mainstream gender in economic strategies.
It concluded that enhancing labor productivity and fostering a competitive industrial sector are also critical to building a resilient and inclusive economy.
The report was supported by the Institute of Statistical, Social and Economic Research (ISSER) and Professor Peter Quartey, Professor Festus Ebo Turkson, Dr. Emmanuel Nii Abbey, and Dr. Nana Ama Asante Poku.
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