By 2024, Ghana’s economy showed clear signs of stabilisation – IERPP

The Institute of Economic Research and Public Policy (IERPP), a policy think tank dedicated to social reform, sound economic management, and responsible governance, has disputed President John Dramani Mahama’s claim of economic crisis.

IERPP states that the erstwhile Akufo-Addo administration rather averted economic crisis.

“Ghana is not in an economic crisis as of 2024 but remains in a recovery phase,” the IERPP said in a statement reacting to the State of the Nation address presented by President Mahama on Thursday, February 27.

The statement explained that by 2024, Ghana’s economy showed clear signs of stabilization.

Explaining the signs of economic growth, IERPP  said that Gross Domestic Product (GDP) growth had inched up to 3.2%, supported by a rebound in cocoa production (700,000 MT) and surging global cocoa prices ($10,000/ton).

Inflation declined to 22.8%(Q2), and the cedi traded steadily at GH?12–13/USD. Debt stabilized at 75–80% of GDP, with the IMF program on track. Youth unemployment dipped slightly to 25%, while the fiscal deficit narrowed to 5.0–5.5% of GDP.

On macroeconomic progress, it added, Ghana has averted an economic crisis through aggressive fiscal and monetary reforms. Successful debt restructuring slashed public debt from 92.4% to 75–80% of GDP, significantly reducing default risks.

Coupled with stringent inflation control, headline inflation fell from 54.1% in 2022 to 15% in 2024, while food inflation eased from 35% to 27%, stabilizing household budgets. The cedi, which collapsed to GH?15.50/USD in 2022, stabilized at GH?12–13/USD due to improved foreign reserves (covering 3.5 months of imports), signaling restored investor confidence.

In terms of structural resilience and social safeguards, it said economic diversification softened oil dependency, with non-oil sectors like ICT ( 12%) and agribusiness ( 7%) driving growth.

“Social protection programs, including the LEAP initiative (2.5 million beneficiaries) and sustained Free SHS enrollments (1.4 million students), cushioned austerity impacts on vulnerable groups. Fiscal discipline under the IMF program reduced the deficit to 5% of GDP, reinforcing Ghana’s credibility and laying a foundation for sustainable recovery. These measures collectively underscore Ghana’s shift from crisis management to cautious economic stabilization,” it said.

While Ghana faced a severe crisis in 2022–2023, it added “2024 marks a turning point. Inflation is declining, growth is broadening, and the cedi has stabilized. Though challenges like youth unemployment and debt persist, the economy is no longer in freefall. Structural reforms, IMF backing, and commodity windfalls have positioned Ghana on a recovery path, dispelling notions of an ongoing crisis. Sustaining progress will require deeper diversification, anti-corruption measures, and climate resilience investments as emphasized in SONA 2025.”

Also making a similar point, Former Finance Minister Dr Mohammed Amin Adam said that “the true state of our economy is that economic growth has rebounded strongly,” contrary to assertions by President John Dramani Mahama that the economy is in a  dire situation.

He pointed out that the past Akufo-Addo government left gross international reserves of $8.9 billion, which is being used to shore up the Cedi currently by the Mahama administration.

Dr Amin Adam accused President John Dramani Mahama of engaging in propaganda during his 2025 State of the Nation address he delivered last Thursday, February 27.

Speaking during the Minority’s ‘True State of the Nation Address’ at a press conference in Accra on Monday, March 3, the Karaga lawmaker said “The past government left gross international reserves of $8.9 billion, which is being used to shore up the cedi. The President ignored mentioning this in his address.”

“President Mahama chose to do propaganda in his State of the Nation Address.”

During the SONA, President John Dramani Mahama expressed concern over the state of the nation, stating that Ghana’s economy is in crisis and citizens are experiencing severe hardships.

He insisted that urgent measures were needed to address the economic downturn.

“The state of our nation is not good. Our economy is in crisis and our people are suffering,” President Mahama stated.

He attributed the current difficulties to various economic challenges, including rising inflation, high levels of debt, and a struggling private sector.

He emphasised the need for strategic policies to boost local industries, improve revenue generation, and manage public debt effectively.

“We cannot ignore the struggles of our people. My administration is committed to implementing bold reforms that will restore economic stability and bring relief to households and businesses,” he assured.

 

 

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