Standard Bank predicts 3.2% growth rate for Ghana in 2024

On March 12, 2024, 9:22 PM

Africa’s biggest bank, Standard Bank is predicting a stronger growth rate of about 3.2% for Ghana in 2024, higher than that of the International Monetary Fund.

The Fund had earlier projected a 2.8% rate for the country.

The 3.3% Gross Domestic Product (GDP) growth rate for Ghana in 2024 places it 16th out of 18 countries captured by the Standard Bank.

According to Africa’s biggest bank, the expansion of the economy this year will be driven by the services sector.

However, El Niño weather, debt burdens, and geopolitics would still pose risks to growth.

“Notably, unfavourable weather concerns, renewed geopolitical risks, and ongoing debt sustainability challenges constraining the fiscal capacity to spur growth, are the primary downside risks for economic growth in SSA [Sub Saharan Africa] for 2024”.

Historically, Ghana’s economy has been expanding by 5% year-on-year until Covid-19 emerged in 2019.

Data from the Ghana Statistical Service showed an expansion in the economy by an annual rate of 2.0 percent in the third quarter of 2023, driven by the services and agriculture sectors.

This was, however, compared with 2.7% over the same period in 2022.

Meanwhile, Ethiopia will record the largest growth rate of nearly 10% in Africa in 2024.

The IMF expects GDP growth in Sub-Saharan Africa (SSA) to rebound to around 4.0% in 2024, from an expected 3.3% in 2023.