Accra: Ghana's economic recovery remains fragile and incomplete despite improvements in macroeconomic fundamentals, Dr. Daniel Anim-Prempeh, Chief Economist at the Public Initiative for Economic Development (PIED), has said. He cautioned the government against any 'premature celebration,' noting that the economy had not yet attained the resilience required for sustained growth.
According to Ghana News Agency, Dr. Anim-Prempeh urged the government to leverage recent macroeconomic gains to accelerate growth, particularly in the manufacturing sector. Ghana's economy has shown signs of stabilisation, including a decline in inflation from more than 50 percent in December 2022 to 3.8 percent in January 2026. The Cedi has also appreciated 40.7 percent against the US dollar, 30.9 percent against the Pound Sterling, and 24 percent against the euro.
President John Dramani Mahama, in his message on the State of the Nation, said the country's foreign reserves stood at US$13.8 billion, covering 5.7 months of imports. He also noted that the public debt had reduced by GHS82.1 billion, from 61.8 percent to 45.3 percent of Gross Domestic Product (GDP), while US$1.4 billion in debt service was settled in 2025 to restore credibility with international partners.
Dr. Anim-Prempeh acknowledged the role of reforms under the US$3 billion International Monetary Fund (IMF)-supported programme and domestic measures in helping restore macroeconomic stability after the economic crisis that led to debt default and restructuring between 2022 and 2023. He emphasized the need for continued fiscal discipline and cautious management to sustain gains achieved under the IMF programme.
The economist called for strengthened productive capacity and a robust manufacturing base to reduce import dependence and conserve foreign exchange reserves. He stressed the importance of building a strong production base to minimize the importation of unnecessary items and ease the burden on reserves.
Dr. Anim-Prempeh also highlighted the need for tangible support for the private sector to create employment for the youth, including incentives under the government's proposed 24-hour economy initiative. These incentives include tax exemptions on importing machinery for manufacturing and renewable energy inputs, among others.
He urged the Ministry of Finance and managers of the economy to demonstrate commitment to fiscal discipline without IMF oversight, warning against complacency. The recovery remains vulnerable to policy reversals, external shocks, and fiscal loosening during election periods.