Ghana’s economy expanded by 3.6% in Q4 2024, its slowest growth in over a year. Industrial growth stagnated at 0.2%, while agriculture grew by 2.9%. The cocoa sector continued to decline, with a 21.4% drop in output. President Mahama’s government faces challenges, particularly after a 2022 debt default and a forthcoming budget presentation.
Ghana’s economy saw its slowest growth in over a year during the fourth quarter of 2024, as industrial activities stagnated and the cocoa sector continued its decline. According to Government Statistician Samuel Kobina Annim, the Gross Domestic Product (GDP) increased by 3.6% in this period, a decrease from 7.2% in the third quarter.
Industrial growth barely registered a change at 0.2%, following a robust 10.4% growth in the previous quarter. Meanwhile, the agricultural sector, which accounts for 40% of the workforce, expanded by 2.9%, a slight dip from the 3.2% reported in Q3. Additionally, cocoa production fell sharply by 21.4%, marking the sixth consecutive quarter of contraction in this crucial industry.
This economic slowdown poses a significant challenge for President John Mahama’s administration, particularly as the government seeks to revive the economy following a debt default in 2022 and subsequent International Monetary Fund (IMF) assistance. Cassiel Ato Forson, the Finance Minister, is scheduled to unveil the government’s inaugural budget on Tuesday.
As the world’s second-largest cocoa producer, Ghana is grappling with adverse weather conditions, crop diseases, and increasing cross-border smuggling, which adversely affect the industry due to higher prices for cocoa beans in foreign markets.
Source: Bloomberg
In summary, Ghana’s economy is experiencing notable challenges characterized by a marked slowdown, particularly in the cocoa sector, which significantly impacts overall growth. The situation has prompted the government’s need to address economic recovery strategies effectively. With the upcoming budget presentation, it remains to be seen how the administration will navigate these pressing challenges to stimulate growth and stabilize the economy.
Original Source: techlabari.com
