August 18, 2024
Ghana’s recent macroeconomic state has been dire. In the first quarter of 2022, the country suffered a series of international credit-rating downgrades, prompted by sharply deteriorating fiscal outcomes. This shut Ghana out of the international bond market, hitherto a key source of budget and balance-of-payments financing. Following the loss of bond market access, the balance of payments erupted into crisis. From December 2021 to June 2022, the overall balance of payments position worsened from a US$500 million surplus to a US$2.5 billion deficit, thus indicating a deterioration of US$3.0 billion in just six months. This caused the stock of foreign […]
May 12, 2025
Ghana’s economic health has been very poor in recent years. Over the past three years, the country has suffered debt crisis, macroeconomic instability, and low growth, which have led to declining living standards, worsening unemployment, and disaffection with the government. This was caused by an extended period of sharp debt buildups and large debt service payments, which eventually led, in early 2022, to downgrades in Ghana’s credit ratings and thus loss of access to the international bond market. Since the past administration started implementing the International Monetary Fund (IMF)-supported program in 2023 to address the crisis, the extraordinarily harsh conditions […]
May 12, 2025
On March 11, 2025, the new National Democratic Congress (NDC) government presented its first budget statement, outlining its policy priorities and objectives for the next four years. As pointed out in IFS’ pre-budget paper, “What Should Be the Priorities of the New Government as It Confronts the Ongoing Economic Difficulties?”, the budget was presented against the backdrop of fiscal and macroeconomic difficulties Ghana is currently grappling with. These include debt challenges, high inflation, high exchange rate instability, and low growth. In his budget speech to Parliament, Minister of Finance Dr. Cassiel Ato Forson acknowledged the economic difficulties and pledged to […]