AfDB revises Ghana’s growth rate upwards, predicts robust economic performance

The African Development Bank (AfDB) has revised Ghana’s growth rate for 2024 to 3.4 per cent up from government’s own 2.8 per cent which is also endorsed by the International Monetary Fund.

The African Bank also projected 4.3 per cent growth rate for Ghana for 2025.

Ghana’s economy grew at 2.9 per cent, against a target of 1.5 per cent.

According to the AfDB, the robust growth for 2024 and beyond will be driven by strong performance in the industry and services sectors on the supply side, and increased private consumption and investment on the demand side.

The AfDB however cautions that the outlook is not without risks. These include the impact of fiscal consolidation measures under the Post-Covid Programme for Economic Growth, the ongoing effects of Russia’s invasion of Ukraine, limited access to finance and foreign exchange, and broader global macroeconomic shocks. Prudent macroeconomic management, the AfDB notes, will be crucial in mitigating these risks.

To accelerate structural transformation and sustain the growth trajectory, the AfDB emphasised the need for Ghana to enhance its competitiveness by addressing infrastructure bottlenecks and promoting agro-industrialization.

Ghana’s economy on track for stronger growth- Finance Minister

In spite of a turbulent foreign exchange regime and persistent inflationary pressures, Ghana’s Minister of Finance, Dr Mohammed Amin Adam is confident of stronger growth this year.

 The Minister has defended government’s management of the economy as the world went through major challenging periods, maintaining that the Ghanaian economy was among the best in the world with strong indicators.

Speaking on CGTN Africa which is the African division of China Global Television Network on the sidelines of the just ended 2024 African Development Bank Annual General Meeting in Nairobi, Kenya, Dr Adam touted government’s achievements.

“Before COVID-19, Ghana’s economy was one of the fastest growing economies in the world. We were great at average 7% inflation was single-to-get inflation. We met our fiscal targets. The cedi was very stable. But following COVID and then, compounded by the Russian war in Ukraine.

Not only Ghana was adversely affected, the whole world was affected,”

Ghana, he recalled had to borrow and borrow to be able to save lives and “this is why we had to go to the IMF.”

The Finance Minister maintained that the economy had rebounded strongly, saying “last year, we grew at 2.9%, against a target of 1.5%.So you can see that, of course, has moved from saving lives to now bring the economy back.”

Ghana, he revealed was close to a successful treatment of its external debt which would pave way for government to smoothly carry out its development agenda. Dr Amin was confident of strong growth in 2024 on the back of increased investments in the agriculture and industry.

He pledged government’s resolve to sustain the gains and keep deficits in check especially within an election year.