President-elect Mahama Casts Doubt on Ghana’s Return to Pre-COVID GDP Growth Level

President-elect John Mahama has expressed reservations regarding the reported 7.2% GDP growth rate for the third quarter of 2024, suggesting skepticism about claims that Ghana’s economy has rebounded to pre-COVID-19 growth levels.

President Akufo-Addo, speaking at the inauguration of the Joint Transition Team on December 11, celebrated the growth rate as evidence of economic recovery, highlighting that the performance brought the average GDP growth for the first three quarters of 2024 to 6.3%.

“In the pursuit of economic progress, you [President-elect Mahama] will be happy to hear that the third quarter results of the economy have been established at a growth rate of 7.2%, making an average rate of growth over the three quarters at 6.3%. We are indeed back to the pre-COVID era,” President Akufo-Addo stated, referencing the 7.9% fourth-quarter growth rate recorded in 2019 before the pandemic.

But reacting to this, President-elect Mahama called for a measured review of the figures, emphasizing that the Transition Teams must thoroughly assess the economic data.

“We call on the Transition Teams to work within the policy budget, and given the prevailing economic circumstances, Mr President seems to strike a very healthy tone on recent economic numbers. But I’m sure the Transition Teams will establish that,” Mr. Mahama remarked.

Ghana’s economy recorded a 7.2% expansion in the third quarter of 2024, marking an improvement from the 6.9% growth achieved in the second quarter.

The strong performance was primarily driven by robust gains in the industrial sector.

The industrial sector posted a 10.4% year-on-year growth in Q3, up from 9.4% in Q2, with mining and quarrying leading the charge.

The sub-sector expanded by a significant 17.1%, its fourth consecutive quarter of growth.

Growth in the services sector accelerated to 6.4% in Q3, compared to 5.7% in Q2. The information and communications sub-sector was a standout performer, registering a 17.1% increase.

Agriculture, which employs around 40% of Ghana’s workforce, saw its growth rate slow to 3.2%, down from 6% in the previous quarter.

The decline was largely driven by a 26% contraction in the cocoa sub-sector, marking its fifth consecutive quarter of decline.

Source: norvanreports.com