Economy is growing below potential – IEA

The Institute of Economic Affairs (IEA) has reported that Ghana’s economy is underperforming, citing low public investment, macroeconomic instability, and high business costs as contributing factors.

According to IEA’s Economic Outlook, leveraging Ghana’s natural resources to boost human and physical capital investments, reduce business costs, and ensure macroeconomic stability is essential for higher growth.

Ghana Statistical Service data show that GDP growth improved from 2.5% in Q2 2023 to 6.9% in Q2 2024, with non-oil GDP rising similarly.

Sectorally, agriculture and services maintained steady growth, while industry showed erratic rates due to variable oil output. The IMF has recently revised Ghana’s growth forecast to 4.0%, reflecting optimism for a post-COVID economic recovery.