Economic Performance in a Global Context
Ghana’s economy, which faced challenges in the previous years, continued to battle inflation, high public debt, and fluctuating foreign exchange rates. The COVID-19 pandemic’s aftermath still echoed throughout the country, and global economic volatility further strained Ghana’s economy.
Despite these challenges, Ghana’s economy showed resilience. GDP growth rates hovered around 3-4%, with key sectors like agriculture, mining, and services contributing to the national income. However, inflation remained high, leading to higher living costs and a reduction in the purchasing power of the average Ghanaian.
The Struggle with Inflation and the Cost of Living
Inflation, especially the cost of food, fuel, and essential goods, became a growing concern in 2024. While the government attempted to stabilize the economy through fiscal reforms, citizens still faced significant economic hardships. As the cost of living increased, many families struggled to make ends meet, which contributed to dissatisfaction with the ruling government.
Public Debt Crisis
The country’s rising public debt, exacerbated by borrowing to finance infrastructure projects and social programs, was another key issue. Despite receiving loans from international organizations like the International Monetary Fund (IMF), Ghana’s national debt reached concerning levels, and the government sought debt restructuring solutions to avoid default.
Youth Unemployment and the Future of Work
Youth unemployment remained one of the most pressing issues in 2024. Despite the government’s focus on creating jobs, the lack of employment opportunities for graduates, skilled labourers, and informal sector workers remained a challenge. Tech startups and digital innovations were among the few areas of growth, offering hope for young Ghanaians interested in entrepreneurship.
Economy: The Role of Foreign Investment
In terms of foreign direct investment (FDI), Ghana saw moderate success, especially in the oil and gas sectors. The mining and energy industries continued to attract international investment, contributing to economic growth. However, critics argued that these industries had not sufficiently benefited the local population.