On January 3, 2025, President Nana Akufo-Addo delivered his final State of the Nation Address, confidently declaring that Ghana's economy has rebounded more quickly than anticipated following the COVID-19 pandemic. He acknowledged initial setbacks, including downgrades from international rating agencies and challenges in Parliament due to a slim majority, which raised doubts about the country's economic recovery [14a1897f].
In 2024, Ghana's economy showcased remarkable resilience, achieving a real GDP growth rate of 6.3%, a significant increase from the 2.6% recorded in 2023. The quarterly expansions were impressive, with growth rates of 4.8% in Q1, 7% in Q2, and 7.2% in Q3, highlighting a strong recovery trajectory [b78ed46b]. President Akufo-Addo projected an annual growth rate of 6.8% for 2025, emphasizing the positive outlook for the economy [76a96276].
Despite this positive economic performance, inflation rose sharply to 23% in November 2024, prompting the Bank of Ghana to respond by cutting the benchmark interest rate from 29% in January to 27% in November [b78ed46b]. This move was part of broader efforts to stabilize the economy amidst rising prices.
The International Monetary Fund (IMF) played a critical role in Ghana's economic landscape, with total disbursements reaching US$1.92 billion throughout the year, including a significant $360 million unlocked in December 2024 after the completion of three IMF reviews [14a1897f][b78ed46b]. Additionally, the country's debt-to-GDP ratio improved, decreasing from 79.2% to 74.6%, indicating a positive trend in fiscal management [b78ed46b].
However, the Ghanaian cedi faced challenges, depreciating by 28% against the US dollar, which has implications for import costs and overall economic stability [b78ed46b]. As of November 2024, the cedi had lost about 22.7% of its value against the dollar, influenced by market confidence issues related to the general elections held on December 7, 2024 [d19c437c].
Dr. Ernest Addison, Governor of the Bank of Ghana, noted that the economy and monetary policy initiatives will significantly impact the cedi's stability in 2025. He highlighted the Domestic Gold Purchase Programme as a key factor in the cedi's recent recovery, suggesting that future performance will depend on fiscal and monetary actions, including the incoming administration's budget [d19c437c].
On a positive note, the equity market capitalization increased to GH¢108.4 billion, reflecting growing investor confidence [b78ed46b]. The banking sector also saw significant growth, with total assets surging by 42.4% and private sector credit expanding by 28.8%, indicating a robust financial environment [b78ed46b]. In support of small and medium enterprises (SMEs), the government allocated GH¢2.1 billion, recognizing their critical role in economic development [b78ed46b].
Overall, Ghana's economy in 2024 not only beat expectations but also demonstrated resilience in the face of global challenges, setting a hopeful tone for the future as it navigates inflation and currency depreciation while striving for sustainable growth. President Akufo-Addo's remarks on the nation's recovery reflect a collective optimism as Ghana approaches 2025 [76a96276].