Ghana’s economy is recovering despite the economic challenges in recent years.
According to Deloitte Ghana’s review of the 2024 Mid-Year Budget, it appears the improved performance in the first half of 2024 has raised government confidence, which should affect investor confidence.
In its review, Deloitte Ghana noted that it is relieving to see the industry sector expand by 6.8% in Q1 2024, following a contraction in 2023 and only marginal growth before 2023.
The mining and quarrying subsectors emerged as the major drivers of industry sector growth registering 12.9% growth.
This sector’s resurgence reflects an uptick in global commodity prices.
Hence, we expect to see a positive impact on the economy as jobs, wages and community infrastructure are all expected to increase.
On inflation, it states that the downward trend recorded in the year-to-date depreciation and inflation further affirms the view that our economic recovery process is on track.
This notwithstanding, the upcoming elections and its potential for increased Government expenditure beyond targeted levels, as well as the recurrent increase in demand for dollars ahead of Christmas festivities in the last quarter of the year present risk to the improved currency performance depreciation and inflation recorded so far.
It noted that “having highlighted the risk to maintaining the positive trajectory noted above, it is important to note that the IMF Programme, whilst serving as a check on the government’s expenditure, also provides an opportunity to boost Ghana’s foreign reserves.”
This, together with other inflows expected from the World Bank Development Policy Operation (DPO) might help absorb some of the FX shocks associated with the December festivities.
By: Nerteley Nettey
