Ghana’s economy grew only 3.6% in Q4 2024, a decline from 7.2% in Q3, due to stagnation in industrial activity and a 21.4% drop in cocoa production. This slowdown poses challenges for President Mahama’s administration as the Finance Minister prepares to present a budget amidst economic difficulties.
Ghana’s economy experienced its most sluggish growth in over a year during the fourth quarter of 2024, primarily due to a stagnant industrial sector and a declining cocoa industry. GDP growth decreased to 3.6% from 7.2% in the previous quarter, as detailed by Government Statistician Samuel Kobina Annim. Industrial activity showed minimal growth at 0.2%, in stark contrast to the robust 10.4% growth recorded in Q3.
The agricultural sector, which constitutes 40% of the workforce, also faced a slight decline, growing by only 2.9% compared to 3.2% in the prior period. Notably, cocoa production suffered a significant downturn, plummeting by 21.4%, marking its sixth consecutive quarter of downturn. This contraction underscores the growing issues within the cocoa sector.
The economic slowdown poses substantial challenges for President John Mahama’s administration, which had previously promised economic revitalization following a debt default in 2022 and subsequent International Monetary Fund (IMF) assistance. On Tuesday, Finance Minister Cassiel Ato Forson is scheduled to unveil the government’s inaugural budget, which will address these economic difficulties.
As the world’s second-largest cocoa producer, Ghana faces numerous hardships, including adverse weather, crop diseases, and rampant cross-border smuggling, which diverts cocoa beans to markets with higher price offers abroad. These factors have further exacerbated the cocoa industry’s struggles, threatening the overall economic recovery.
In conclusion, Ghana’s economic growth has significantly slowed, impacted by a stagnant industrial sector and severe declines in cocoa production. The government, led by President John Mahama, faces pressing challenges as they seek to navigate the repercussions of a previous debt crisis and formulate a budget to revitalize the economy amid various agricultural difficulties. Addressing these issues is crucial for restoring economic stability in the nation.
Original Source: techlabari.com
