Economist cautions against premature celebration of Ghana’s Economic recovery
10th March 2026
Daniel Anim-Prempeh, Chief Economist at the Public Initiative for Economic Development (PIED), has warned that Ghana’s economic recovery remains fragile despite recent improvements in key macroeconomic indicators.
He cautioned the government against celebrating too early, stressing that the economy has not yet developed the resilience needed to sustain long-term growth.
In an interview with the Ghana News Agency on the country’s economic outlook, Dr Anim-Prempeh urged authorities to build on recent macroeconomic gains and focus on accelerating growth in critical sectors, particularly manufacturing.
According to him, although the economy is showing signs of stabilisation, significant structural challenges remain. Inflation, which exceeded 50 percent in December 2022, has declined sharply to 3.8 percent as of January 2026.
The Ghana cedi has also strengthened, appreciating by 40.7 percent against the US dollar, 30.9 percent against the Pound Sterling, and 24 percent against the euro.
Delivering the State of the Nation Address on February 27, John Dramani Mahama said Ghana’s foreign reserves had risen to about US$13.8 billion, representing 5.7 months of import cover.
He also disclosed that the country’s public debt had declined by GH₵82.1 billion, falling from 61.8 percent to 45.3 percent of Gross Domestic Product (GDP). In addition, US$1.4 billion in debt service obligations was paid in 2025 to help restore the country’s credibility with international partners.
Despite these gains, Dr Anim-Prempeh said the economy still faces major challenges.
“We are not totally out of our economic mess. We still have issues with the cocoa sector, we are battling electricity challenges, and the government has yet to pay some outstanding salaries, which suggests that available resources are not enough to address all these problems,” he noted.
He acknowledged that reforms under the US$3 billion programme supported by the International Monetary Fund (IMF), alongside domestic policy measures, have helped restore macroeconomic stability following the crisis that led Ghana to default on its debt and undertake restructuring between 2022 and 2023.
However, he emphasised that sustaining the recovery would require continued fiscal discipline and careful economic management.
“The government must tread cautiously because persistent challenges remain in key sectors. Maintaining the gains achieved under the IMF programme will require sustained fiscal discipline,” he said.
Dr Anim-Prempeh also called for a stronger focus on boosting domestic production, particularly through the development of a robust manufacturing base to reduce Ghana’s reliance on imports and protect foreign exchange reserves.
“We need to build a strong production base. Our manufacturing sector must expand so we can reduce the importation of unnecessary goods and ease pressure on our foreign reserves, thereby improving our foreign exchange position,” he stated.
He further stressed that a sustainable recovery must include concrete support for the private sector to generate employment for young people.
According to him, incentives proposed under the government’s planned 24-hour economy initiative—such as tax exemptions on imported manufacturing machinery, renewable energy equipment, raw materials not available locally, logistics vehicles, and corporate tax relief for farming in strategic value chains—could help stimulate production and job creation.
“Supporting the private sector to create sustainable jobs for the youth is very critical. These are key priorities. It may be difficult, but with focus and commitment, the government should be able to achieve it,” he said.
Dr Anim-Prempeh also raised concerns about whether the country would maintain fiscal discipline once the IMF programme concludes.
“The big question going forward is how we will sustain these gains after the IMF programme. Will we maintain the fiscal discipline needed to ensure long-term macroeconomic stability?” he asked.
He urged the Ministry of Finance and economic managers to demonstrate strong commitment to fiscal discipline even without IMF oversight.
Dr Anim-Prempeh also warned against complacency, noting that Ghana’s recovery could still be undermined by policy reversals, external economic shocks, or fiscal expansion, particularly during election periods.