AfDB Projects Ghana's Economy to Grow by 3.4% in 2024

The African Development Bank (AfDB) has predicted Ghana's economy to grow by 3.4% in 2024, an increase from 2.9% in 2023, Graphic Business reports.

This growth is expected to be driven by the industrial and service sectors, along with private consumption and investment.

The AfDB’s GDP growth projection aligns with Fitch's prediction of 3.5%, but exceeds the government's and

Read full articleWorld Bank's forecasts of 2.8%. Inflation is anticipated to remain outside the Bank of Ghana's target range, estimated at 20.9% for 2024 and 11.1% for 2025.

The fiscal deficit is projected to widen slightly to 4.9% in 2024 before narrowing to 4.2% in 2025 due to ongoing fiscal consolidation efforts. Meanwhile, the current account deficit is expected to increase to 1.9% in 2024 and 2.3% in 2025.

The AfDB report highlights several challenges, including fiscal consolidation, global macroeconomic shocks, and limited access to finance. It emphasizes the need for prudent macroeconomic policies and structural transformation, particularly in agriculture and industry, to boost productivity and resilience against global shocks.