The African Development Bank (AfDB) has projected a modest growth rate of 2.8% for Ghana in 2024, a slight improvement from the estimated 1.5% forecast in 2023.
This anticipated growth is expected to be the lowest in West Africa for the year.
The Bank attributes Ghana’s modest growth to the ongoing fiscal consolidation efforts and the impact of high inflation on household budgets.
The disclosure was made on February 16, 2024, in Addis Ababa, Ethiopia, during the presentation of Africa’s Macroeconomic Performance and Outlook for 2024 by the AfDB.
“In Ghana, growth is projected to rise from an estimated 1.5% in 2023 to 2.8% in 2024, with modest growth reflecting the ongoing fiscal consolidation and high inflation weighing on household budget”.
The forecast aligns with the expectations of the Government of Ghana.
The AfDB emphasizes that the ongoing International Monetary Fund program will have repercussions on the private sector and household consumption, leading to limitations on spending. Additionally, it foresees that the prices of goods and services will remain elevated.
In the West African region, Ghana and Nigeria are projected to experience growth below the regional average of 4.0%, with Nigeria’s economy expected to expand by 2.9%.
Meanwhile, Niger is anticipated to record the highest growth rate in Africa for 2024, reaching 11.2%, driven by hydrocarbon production and exports.