Accra: The International Monetary Fund (IMF) has highlighted Ghana's ongoing struggle with youth unemployment, noting that despite some economic recovery, the jobless rate among youths aged 15 to 24 remains high at approximately 30%. This concern was raised in the IMF's latest report on Ghana, where the organization emphasized the need for stronger policies to convert economic improvements into better living conditions for the population.
According to Ghana Web, the IMF's report indicates that although macroeconomic conditions have shown improvement, social challenges persist. The Fund referenced World Bank estimates showing a modest decline in poverty measured at the $3-a-day international poverty line, which fell to 37.1% in 2025 from 38.9% in 2022. This reduction was attributed to easing inflationary pressures and better performance in agriculture and services sectors.
The IMF's analysis also revealed that Ghana has dropped 1,800 public projects following an investment review, citing that many Ghanaians still face significant economic hardships. To better address youth unemployment, the IMF noted that Ghana's Medium-Term National Development Policy Framework (2026-2029) aims to foster growth in labor-intensive sectors that can generate more jobs.
In addition to unemployment issues, the IMF identified deficiencies in Ghana's social protection system, advocating for increased investment and enhancements in existing programs. Although social spending has risen slightly under the Extended Credit Facility (ECF) program, the Fund pointed out that the coverage and benefit levels remain insufficient compared to what Ghana requires and what is seen in similar economies. The Livelihood Empowerment Against Poverty (LEAP) program, even after planned expansions, is expected to cover only a small portion of the estimated 40% of Ghanaians living below the poverty line.
The report also addressed educational challenges, remarking that while enrolment outcomes have improved, secondary school participation still falls short of the Sustainable Development Goal (SDG) targets, with quality indicators trailing those of peer countries.
Furthermore, the IMF stressed the need to reinforce social safety nets and implement targeted social policies, particularly as Ghana continues with fiscal consolidation, faces global economic uncertainties, and adjusts utility tariffs. Expanding social protection is deemed essential to cushion vulnerable households against economic shocks and to ensure that economic growth is more inclusive.