Ghana’s economy grew by 3.6% in Q4 2024, a decline from 7.2% in Q3, with industrial activity nearly stagnant and a 21.4% drop in cocoa output. This poses challenges for President Mahama’s administration as it navigates economic recovery after a debt default and IMF bailout.
Ghana’s economy experienced its slowest growth in over a year during the fourth quarter of 2024, largely due to stagnation in industrial activity and a decline in the cocoa sector. The gross domestic product (GDP) grew by 3.6%, a significant drop from 7.2% in the third quarter, as reported by Government Statistician Samuel Kobina Annim. Industrial growth was almost stagnant at 0.2%, following a robust expansion of 10.4% in the preceding quarter.
In the agricultural sector, which employs approximately 40% of the workforce, growth decreased to 2.9% from 3.2% in the previous quarter. Notably, cocoa production saw a dramatic decline of 21.4%, marking the sixth consecutive quarter of contraction. This trend poses significant challenges for the governance of President John Mahama, whose administration focused on economic revival following a 2022 debt crisis and subsequent IMF bailout.
Finance Minister Cassiel Ato Forson is scheduled to unveil the government’s first budget on Tuesday, which will address these economic hurdles. Ghana, recognized as the world’s second-largest cocoa producer, faces adverse conditions such as poor weather, crop diseases, and extensive cross-border smuggling, exacerbating the situation as cocoa beans are sold for higher prices abroad.
Ghana’s economic growth has slowed significantly, particularly due to the ongoing decline in its crucial cocoa sector. With industrial activity nearly stagnating, the challenges ahead for the Mahama administration are substantial, especially as the finance minister prepares to present a budget aimed at economic recovery. This situation reflects broader issues within the agricultural sector, necessitating urgent attention to revive growth and stabilize the economy.
Original Source: techlabari.com
