Adnan Adams Mohammed
A new report has position Ghana’s economic outlook in the short to medium term as favorable as against economic giant of West Africa, Nigeria.
Base on the first quarter and half year economic trajectory, Deloitte in its West Africa economic outlook report released this month, praised the performance of the Ghanaian economy so far.
The report emphasised that, Ghana’s economy grew by 4.7% year on year in the first quarter of 2024, driven by rapid 6.8% year-on-year growth in the industrial sector. The agriculture and services sectors grew at a slower pace of 4.1% and 3.3% year on year, respectively. The country is recovering from a debt-induced crisis, following the government’s ongoing restructuring of its US$30 million debt.
Also, the implementation of monetary policy measures by the Bank of Ghana has also helped reduce inflation. Ghana has been able to secure approval for two tranches of IMF disbursements so far this year, bringing cumulative disbursements from the IMF to US$1.56 billion since 2023, The international accounting and auditing firm stated in its West Africa economic outlook, August 2024 report.
However, it added there are downside risks emanating from the forthcoming general elections in December, high inflation, and elevated interest rates, all of which are weighing on private consumption and investment spending in 2024.
“However, a faster pace of recovery is expected from 2025 onward, driven by an anticipated decline in consumer prices, which will trigger a further cut in interest rates. In addition, mining output is estimated to rise, supported by increased output from the recommissioned Bibiani gold mine and production from the Ahafo North gold mine.
“The country’s cocoa output—one of the main drivers of the economy—will encounter volatility as a result of climatic conditions, smuggling, diseases (cacao swollen shoot virus and the black pod, for instance), and global commodity price fluctuations,” the report said.
Rising consumer prices have been one of the major macroeconomic challenges plaguing developing countries, especially in West Africa. While inflation in Ghana now seems to be on a downward slope, it rages on in Nigeria, it added.
