Economic Recovery: Downside risks from upcoming elections remain – Deloitte cautions Ghana
Published:
3 months ago
Source:
3News
Deloitte has indicated that the outlook for the Ghanaian economy is favorable in the short to medium term. However, it added 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, mining output is estimated to rise, supported by increased output from the recommissioned Bibiani gold mine and production from the Ahafo North gold mine."
Ghana, compared to Nigeria, appears to have stronger growth prospects, it said. Ghana's 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.