The outlook for the Ghanaian economy is favorable in the short to medium term, Deloitte has stated in its West Africa Economic Outlook

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 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”.

In addition, the professional services firm, said, 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”, it stressed.

Ghana has stronger growth prospects than Nigeria

Ghana, compared to Nigeria, appears to have stronger growth prospects.

Its 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 $30 million debt.

The implementation of monetary policy measures by the Bank of Ghana, Deloitte said, has also helped reduce inflation.