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Deloitte, a leading international accounting and auditing firm, has indicated that the economic situation and the well-being of citizens will play a crucial role in Ghana’s upcoming elections.
In its August 2024 West Africa economic outlook report, Deloitte highlighted that Ghana is one of several countries heading to the polls this year.
The firm emphasised that voters will heavily weigh the current economic conditions and their personal welfare when assessing campaign promises and choosing the next leader. Ghana’s economy, which relies significantly on cocoa and gold, will be a central focus.
Deloitte’s report noted that Ghana shows stronger economic growth potential compared to Nigeria. The country’s economy expanded by 4.7% year-on-year in the first quarter of 2024, with a notable 6.8% growth in the industrial sector.
However, the agriculture and services sectors grew more slowly, at 4.1% and 3.3% respectively. Ghana is in the midst of recovering from a debt crisis, with the government restructuring its $30 billion debt.
The report also noted that the Bank of Ghana’s monetary policy measures have been effective in reducing inflation. Ghana has secured two rounds of IMF disbursements this year, totaling $1.56 billion since 2023, and the short to medium-term economic outlook is positive.
Nevertheless, Deloitte cautioned that the upcoming elections, high inflation, and elevated interest rates pose risks to economic stability. These factors are impacting consumer spending and investment. A quicker recovery is anticipated from 2025, driven by expected decreases in consumer prices and further cuts in interest rates.
Additionally, mining output is projected to increase due to the recommissioning of the Bibiani gold mine and production from the Ahafo North gold mine. However, cocoa production, a key economic driver, may face challenges due to climate conditions, smuggling, disease, and fluctuations in global commodity prices.
source: citinewsroom.com
Rafiq Adam
Emmanuel Mensah
