Ghana’s GDP growth slowed to 3.6% in Q4 2024, down from 7.2% in Q3, amid stagnation in industrial activity and a 21.4% drop in cocoa production. This deterioration presents challenges for President John Mahama’s administration, particularly after a debt default and IMF intervention. Finance Minister Cassiel Ato Forson is set to present the budget.
Ghana’s economic growth has notably decelerated, reaching its slowest rate in over a year during the fourth quarter of 2024. According to Government Statistician Samuel Kobina Annim, the Gross Domestic Product (GDP) increased by 3.6% in this quarter, a significant drop from 7.2% recorded in the third quarter.
Moreover, the industrial sector demonstrated stagnation with a meager growth of 0.2%, a stark contrast to the robust 10.4% expansion in the previous quarter. In the agricultural sector, which employs approximately 40% of the workforce, growth was reported at 2.9%, a slight decrease from 3.2% in the third quarter.
Significantly, cocoa production has faced a drastic decline, plummeting by 21.4%, continuing a trend of contraction for the sixth consecutive quarter. This downturn poses a considerable challenge for President John Mahama’s administration, which has committed to rejuvenating the economy following a debt default in 2022 and an IMF bailout.
Finance Minister Cassiel Ato Forson is poised to unveil the government’s first budget shortly, which will likely reflect these economic challenges. As the world’s second-largest cocoa producer, Ghana is contending with adverse weather conditions, crop diseases, and rampant cross-border smuggling, as cocoa beans command higher prices internationally.
In conclusion, Ghana’s economic growth has sharply slowed, largely influenced by the declining cocoa sector and stagnation in industrial activities. The government faces pressing economic challenges, compounded by agricultural difficulties and external market pressures. The forthcoming budget presentation by the Finance Minister will be critical in addressing the current economic conditions and outlining a recovery strategy.
Original Source: techlabari.com
