Ghana’s economy expanded by 6.9 percent year-on-year in the second quarter of 2024, the fastest growth since 2019, driven by strong performance in key sectors like mining and industry, according to the Ghana Statistical Service. The gold sector led with a 23.6 percent growth, contributing to a 9.3 percent rise in the overall industry sector. Services and agriculture also saw growth, at 5.8 percent and 5.4 percent respectively. However, the
cocoa sector has been struggling, contracting by 26.2 percent in Q2 2024, due to ongoing challenges like disease outbreaks and adverse weather conditions, which have significantly impacted crop yields. Recovery efforts are likely to focus on addressing these agricultural issues by improving disease management, enhancing farming techniques, and investing in climate-resilient practices. However, full recovery in the sector remains uncertain without addressing these fundamental challenges, which continue to weigh heavily on the world’s second-largest cocoa producer.
The economic rebound comes at a crucial time as Ghana continues to restructure its public debt, following an agreement with international bondholders. The country is offering a bond swap deal to tackle its $13bn debt, with bondholders having until 30 September to accept the offer.
This growth signals Ghana’s recovery from one of the worst economic crises in its history, with increased mining and industry activity leading the way.
Credit: Africa Briefing
