Ghana’s economy grew by 3.6% in Q4 2024, a decrease from 7.2% in Q3. Industrial growth was nearly stagnant at 0.2%, while agriculture grew by 2.9%. The cocoa sector faced a drastic decline of 21.4%, the sixth consecutive quarter of downturn, posing challenges for the government amid economic revival efforts.
Ghana’s economic growth in Q4 2024 experienced a significant slowdown, recording a GDP increase of only 3.6%, compared to 7.2% in Q3. The data, reported by Government Statistician Samuel Kobina Annim, highlights a stagnation in industrial activity, which grew just 0.2% following a robust 10.4% growth in the previous quarter.
The agricultural sector, encompassing 40% of the workforce, saw a modest growth of 2.9%, a slight decrease from 3.2% in the prior quarter. A major concern is the cocoa sector, which suffered a substantial output decline of 21.4%, marking the sixth consecutive quarter of contraction.
The implications of this slowdown are particularly pressing for President John Mahama’s administration, which has pledged to rejuvenate the economy following a 2022 debt default and subsequent IMF assistance. His finance minister, Cassiel Ato Forson, is expected to unveil the government’s inaugural budget on Tuesday to address these challenges.
Ghana, recognized as the world’s second-largest producer of cocoa, is currently grappling with adverse weather conditions, crop diseases, and significant cross-border smuggling. These factors are exacerbated by the fact that cocoa beans are selling for higher prices in international markets than domestically.
In summary, Ghana’s economy is facing a deceleration in growth driven primarily by a downturn in the cocoa sector, which is crucial for employment and revenue. With industrial output stagnating and agriculture declining, the government faces the challenge of revitalizing the economy and addressing budgetary concerns amid these setbacks. Addressing the adverse effects on cocoa production will be pivotal as the country moves forward.
Original Source: techlabari.com
