Dr. Mohammed Amin Adam
Ghana’s economic prospects in the short to medium term look pleasing, according to Deloitte, in its West Africa Economic Outlook.
It stated that, “The outlook for the Ghanaian economy is favorable in the short to medium term. However, 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,” it emphasised.
Deloitte, on the other hand, hinted that downside risks could arise from the December general elections, and these include high inflation and high interest rates, all of which impact on individual consumption and investment spending.
The professional services firm continued that mining output was estimated to improve, aided by more output from the re-commissioned Bibiani Gold Mine and also production from the Ahafo North Gold Mine.
Deloitte said, “Ghana’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.”
Ghana, Nigeria Growth Comparison
Compared to Nigeria, it said Ghana appeared to have stronger growth prospects citing that the economy grew by 4.7% year-on-year in the first quarter of 2024, propelled by a rapid 6.8% year-on-year growth in the industrial sector.
Again, the agriculture and services sectors grew at a slower pace of 4.1% and 3.3% year-on-year, respectively.
Ghana is recuperating from a debt-induced challenge, as a result of the government’s ongoing restructuring of a $30 million debt.
The report added that the Bank of Ghana’s monetary policy measures had been instrumental in helping to reduce the inflation rate.
By Samuel Boadi