By Sarah Baafi
The Finance Minister, Dr. Cassiel Ato Forson, has delivered a sobering assessment of the country’s economic state, stressing the urgent need for structural reforms to address fiscal inefficiencies and promote sustainable growth.
Speaking at the National Economic Dialogue on March 3, 2025, Ato Forson revealed that while Ghana’s economy has grown by an average of 4.4% in recent years, this growth has been largely driven by oil and mining sectors, with limited progress in structural transformation. “Agriculture still accounts for one-third of GDP, while manufacturing productivity remains low.”
He highlighted that over 85% of exports in 2024 came from primary commodities, underscoring the economy’s overreliance on resource extraction.
The minister also raised concerns about Ghana’s rising debt levels, which surged from 20% of GDP in 2016 to 93% by 2022.
He stated: “Persistent fiscal deficits exceeding 4% of GDP between 2008 and 2019 have further strained public finances. Non-mandatory expenditures such as public sector wages and interest payments consume about 70% of government spending, crowding out investment in infrastructure and social programs.”
Ato Forson criticised inefficiencies in public spending, particularly in education and health. He noted that only a quarter of education funds go to pre-primary and primary levels, while less than 60% of the National Health Insurance budget is used for claim payments due to resource mismanagement.
Calling for decisive action, Ato Forson stressed the importance of diversifying the economy beyond commodities and improving spending efficiency. “We must reset our economy by addressing these systemic challenges to achieve long-term resilience and inclusive growth,” he said.
The dialogue continues tomorrow, with stakeholders expected to propose actionable solutions to drive economic transformation and fiscal discipline.
