Unemployment Pegged at 13.1%
The African Development Bank has estimated Ghana’s unemployment rate at 13.1 percent, while placing the country’s inequality level at 43.5 percent, highlighting persistent challenges in ensuring that economic growth benefits all segments of the population.
The assessment is contained in the Bank’s Economic Outlook 2026 report, which notes that despite recent improvements in macroeconomic indicators, unemployment and inequality remain elevated, raising concerns about the inclusiveness of Ghana’s growth trajectory.
According to the report, joblessness continues to disproportionately affect women and young people, underscoring structural challenges within the labour market.
“Unemployment disproportionately affects women (14.8%) and youth (32%),” the report stated.
The AfDB observed that while Ghana has recorded encouraging economic growth and macroeconomic stabilization, many citizens are yet to fully benefit from these gains through improved employment opportunities and income growth.
Social Spending and Inclusive Growth
The Bank further noted that efforts to support vulnerable groups were constrained in 2024 due to financing shortfalls that limited pro-poor expenditure.
However, it acknowledged that the government’s 2025 and 2026 budgets have placed greater emphasis on inclusive growth through increased allocations to social development programmes.
“While pro-poor spending was constrained by financing shortfalls in 2024, the 2025/26 budget aimed at supporting inclusive growth with increased allocations for social development, including human capital, education and health,” the report said.
The AfDB indicated that sustained investments in education, healthcare, skills development and social protection will be critical to reducing inequality and creating opportunities for broader participation in economic growth.
Positive Medium-Term Outlook
Despite concerns about unemployment and inequality, the Bank expressed optimism about Ghana’s medium-term economic prospects, citing improvements in fiscal management, inflation control and external sector performance.
According to the report, inflation is expected to continue declining and could return to single-digit levels over the medium term, supported by exchange rate stability and prudent monetary policy.
The AfDB also projected that Ghana’s fiscal position would continue to improve as authorities pursue fiscal consolidation measures and implement ongoing debt restructuring reforms.
The fiscal deficit is expected to remain within government targets, declining to 2.6 percent of Gross Domestic Product (GDP) in 2026 and further to 2.2 percent in 2027.
The Bank noted that continued expenditure discipline, enhanced domestic revenue mobilisation and the benefits of debt restructuring are expected to support fiscal sustainability.
External Sector Remains Resilient
On the external front, the report projected that Ghana’s current account balance would remain in surplus at approximately 3.0 percent, reflecting strong export performance and improved foreign exchange inflows.
The AfDB said continued strength in exports, particularly from gold, oil and other commodities, alongside improved macroeconomic management, should help support external stability and strengthen investor confidence.
Balancing Growth with Inclusion
While acknowledging the country’s improving macroeconomic outlook, the AfDB stressed that the ultimate measure of economic success will depend on the extent to which growth translates into jobs, reduced poverty and improved living standards.
The Bank urged policymakers to complement fiscal and monetary reforms with targeted interventions aimed at expanding employment opportunities, particularly for women and young people, while strengthening social protection systems and investing in human capital development.
The report concludes that although Ghana’s economic recovery remains on a positive path, addressing unemployment and inequality will be essential to ensuring that growth becomes more inclusive, sustainable and beneficial to all citizens.
