The International Monetary Fund (IMF) has cautioned that Ghana’s economic recovery is yet to fully address the country’s youth unemployment challenge, with joblessness among people aged 15 to 24 remaining stubbornly high at about 30%.

In its latest country report on Ghana, the Fund said that while macroeconomic conditions have improved, social challenges persist and require stronger policies to ensure that economic gains translate into improved livelihoods.

The IMF cited World Bank estimates indicating that poverty, measured at the $3-a-day international poverty line, declined modestly to 37.1% in 2025 from 38.9% in 2022.

According to the World Bank, the decline was supported by easing inflationary pressures and improved performance in the agriculture and services sectors.

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However, the IMF stressed that a significant proportion of Ghanaians continue to face economic hardships.

To address the unemployment situation, particularly among young people, the Fund said Ghana’s Medium-Term National Development Policy Framework (2026–2029) focuses on promoting growth in labour-intensive sectors capable of creating more jobs.

Beyond unemployment, the IMF identified weaknesses in Ghana’s social protection system, calling for increased investment and improvements in the effectiveness of existing programmes.

The Fund noted that although social spending has increased modestly under the Extended Credit Facility (ECF) programme, coverage and benefit levels remain inadequate compared with the country’s needs and those of similar economies.

The IMF said the Livelihood Empowerment Against Poverty (LEAP) programme, even after planned expansions, would cover only a fraction of the estimated 40% of Ghanaians living below the international poverty line.

The report also highlighted challenges in the education sector, noting that while enrolment outcomes have improved, secondary school participation remains below Sustainable Development Goal (SDG) targets, with quality indicators still lagging behind those of peer countries.

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The Fund stressed that strengthening social safety nets and implementing targeted social policies will be crucial, particularly as Ghana continues with fiscal consolidation, faces global economic uncertainties and adjusts utility tariffs.

It added that expanding social protection would help cushion vulnerable households against economic shocks and ensure that economic growth becomes more inclusive.

DR/MA