The Institute for Economic Affairs (IEA) has described the projected growth rates for Ghana’s economy in the next five years by the International Monetary Fund as below its potential.

In its bi-monthly Economic Outlook, it said Ghana has excess resources and capacities to enable it grow at higher rates, which are needed to accelerate the country’s development and poverty alleviation, adding, “what is required is to leverage the resources to increase investments in physical capital, human capital and technology to drive economic growth”.   

In spite of the strong and rising growth during quarter three of 2024, Ghana’s growth for the year was projected at just 4.0%.  This suggested that growth would slow down considerably in quarter 4 2024.

IEA said the reason behind the slowdown was, however, not immediately known.

“It could be due to projected decline in the value of some of Ghana’s major commodities from lower volumes and/or prices”, it stated.

The projected growth of 4.0% for Ghana in 2024 is slightly higher than the growth rates of 2.9% and 3.8% recorded in 2023 and 2022 respectively.

Real GDP growth is projected in the IMF programme to rise to 4.4% in 2025, 4.9% in 2026 and then plateau at 5.0% during 2027-29.

“These growth rates are, however, below the country’s potential”, IEA expressed worry.

Economy expanded by 7.7% in Q3 2024

Ghana’s economy expanded by 7.7% in Q3, which was much higher than the 2.2% recorded in the same period of 2023. Non-oil real GDP growth was a little lower at 7.2%.

The strong growth recorded in overall real GDP in Q3- 2024 was fueled by extractives, largely oil and gold.