Ghana is slowly retracing its steps back to a path of macroeconomic stability, as the government’s fiscal consolidation and debt restructuring activities are bearing fruit.

According to professional services firm, Deloitte, the gold and cocoa giant is estimated to grow by 4.9% in 2024, with further expansion of 5.1% projected in 2025.

This it said will be on the back of the government’s debt sustainability initiatives, a more stable local currency and a deceleration in inflation.

“The deceleration in inflation would trigger further interest rate cuts that began in 2024 and lead to lower borrowing costs. This should drive increased private consumption and investment spending, which will boost economic growth”, Deloitte revealed in its West Africa in Focus titled “A Sneak Preview of 2025: What lies ahead?”

Mahama’s Policies to Be Broad Based

Ghana’s December 2024 elections were relatively peaceful, with the outcome resulting in a change in government and Party.

Former President John Mahama won the election on his third attempt under the National Democratic Congress (NDC) party, truncating the ruling party’s (New Patriotic Party) 8-year regime. Mr. Mahama was the President of Ghana between 2012 and 2017.

Deloitte said President-elect Mahama will be inheriting an economy challenged by high inflation, currency weakness and debt concerns.

His economic policies will however likely focus on but not be limited to fiscal discipline and strategic investments in infrastructure.

“There is the possibility that he would renegotiate the terms of the ongoing International Monetary Fund bailout of US$3billion”, it added.

Downside Risks to Economic Growth

Deloitte also enumerated some downside risks to the projected economic growth for Ghana.

These include commodity price volatility and adverse weather conditions,  local exchange rate shocks and volatility, delays in private debt restructuring leading to failure to meet IMF conditions, poor infrastructure  and sporadic social unrest due to public discontent with poor living standards.