Ghana’s economic growth slowed to 3.6% in Q4 2024 from 7.2% in Q3. Industrial growth was minimal at 0.2%, and agriculture grew by 2.9%. The cocoa sector suffered a 21.4% decline, its sixth quarter of contraction, presenting challenges for the government as it prepares the upcoming budget.
Ghana has recently reported a significant slowdown in economic growth, with the nation’s Gross Domestic Product (GDP) increasing by only 3.6% in the last quarter of 2024, a marked decline from the previous quarter’s 7.2%. This information was provided by Government Statistician Samuel Kobina Annim.
Industrial activity in Ghana nearly stagnated, experiencing a mere 0.2% growth, a stark contrast to the robust 10.4% growth recorded in the third quarter. The agricultural sector, which accounts for approximately 40% of the workforce, experienced a growth rate of 2.9%, slightly diminished from 3.2% in the prior quarter.
A particularly concerning factor is the cocoa sector, which saw a drastic output decrease of 21.4%, representing its sixth consecutive quarter of decline. This downturn presents significant challenges for President John Mahama’s administration, which has focused on revitalizing the economy following a debt default and an IMF bailout in 2022.
As the challenges mount, Finance Minister Cassiel Ato Forson is preparing to unveil the government’s first budget on Tuesday. Ghana, recognized as the second-largest cocoa producer globally, is facing hurdles including adverse weather conditions, crop diseases, and escalated cross-border smuggling, as cocoa beans are being sold for higher prices abroad.
In summary, Ghana’s economy is grappling with a notable slowdown in growth, primarily due to stagnation in industrial activity and a significant decline in cocoa production. This situation poses substantial challenges for the current administration, which is tasked with recovering from past economic difficulties while confronting pressing agricultural issues and market dynamics.
Original Source: techlabari.com
