The outlook for the Ghanaian economy is favorable in the short to medium term Deloitte has said in its West Africa Economic Outlook, August 2024 report.

However, it said 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.

The report noted that 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. 

It, however, worryingly stated that 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 Ghanaian 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.

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.