Deloitte Ghana has indicated that despite recent economic challenges, Ghana’s economy continues to show signs of recovery.
This observation was made in Deloitte’s review of the 2024 Mid-Year Budget, based on information provided by Finance Minister Dr. Mohammed Amin-Adam.
The review highlighted that the 2024 mid-year budget statement did not include a request for additional allocations from Parliament, unlike in previous years.
Instead, the focus was on tracking the progress of the 2024 budget’s implementation and revising key economic indicators. According to Deloitte, the data shared by the Finance Minister underscores the resilience of the economy, noting, “The information shared by the finance minister suggests the economy is recovering despite economic challenges in recent years.”
Deloitte also pointed out that the improved economic performance in the first half of 2024 has bolstered the government’s confidence, which is expected to positively influence investor sentiment.
A significant highlight in the review was the strong performance of the industry sector, which expanded by 6.8% in the first quarter of 2024.
This marks a notable rebound following a contraction in 2023 and only marginal growth in the years preceding it. The mining and quarrying subsectors were identified as the primary drivers of this growth, registering a 12.9% increase, attributed to a rise in global commodity prices.
Deloitte noted, “We expect to see a positive impact on the economy as jobs, wages, and community infrastructure are all expected to increase.”
For 2024, overall Gross Domestic Product (GDP) growth is now projected at 3.1%, slightly higher than the initial forecast of 2.8%. Non-oil GDP growth has also been revised upward to 2.8% from the earlier estimate of 2.1%. Looking ahead, overall GDP is expected to grow at an average rate of 4.4% per annum between 2024 and 2027. In 2023, Ghana’s economy grew by 2.9%, surpassing the revised target of 2.3%, with non-oil GDP expanding by 3.3% compared to the revised target of 2.8%.
The growth in 2023 was largely driven by the services sector, which grew by 5.5%, and the agriculture sector, which expanded by 4.5%, while the industry sector saw a contraction of 1.2%.