International accounting and auditing firm, Deloitte, has disclosed that the economy and citizens’ welfare will be major deciding factors in the upcoming elections in Ghana.
“Around 50 countries across the world are heading to the polls this year—or have already done so—including West African countries. Ghanaians are going to the polls this December. The current state of the economy and citizens’ welfare will factor heavily into how voters evaluate campaign promises and determine the next leader of the nation, an economy heavily dependent on cocoa and gold.
“The election outcome will weigh on policy direction, as well as investor and market sentiment,” Deloitte disclosed in its West Africa economic outlook, August 2024 report.
Deloitte in its report added that Ghana, compared to Nigeria, appears to have stronger growth prospects.
“Its [Ghana] 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 (figure 2). 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 US$30 million debt.
Deloitte added that the implementation of monetary policy measures by the Bank of Ghana has also helped reduce inflation.
“Ghana has been able to secure approval for two tranches of IMF disbursements so far this year, bringing cumulative disbursements from the IMF to US$1.56 billion since 2023.8. The outlook for the Ghanaian economy is favorable in the short to medium term.”
However, report noted that “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.9 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.”
