The 5.7% GDP growth rate for 2024 is expected to stir heated debates in parliament during the budget presentation. The Ghana Statistical Service released this data just a day before the budget, revealing that the economy expanded to GH¢1.17 trillion. This will likely empower the minority in parliament, who argue that the previous government left the economy in better shape than the current administration claims.
Some minority members have already stated that this growth rate vindicates their position, arguing that it will also reduce Ghana’s debt-to-GDP ratio to 61.8% from the 72.2% recorded in November last year. The minority may seize this opportunity to argue that the economy was not as dire as the current government has portrayed.
However, the majority is expected to counter this assertion, maintaining that the economy remains in a fragile state. This debate is likely to play out both within parliament and among the public, especially as economic indicators continue to dominate national discussions.
The 5.7% growth is one of Ghana’s best post-COVID performances, following lower growth rates of 2.9% in 2023, 3.8% in 2022, 5% in 2021, and 0.5% in 2020, the peak COVID year. However, economic experts have raised concerns about the quality of this growth. They argue that while the extractive industries like gold and oil contribute significantly to GDP, their impact on job creation and the livelihoods of ordinary Ghanaians remains minimal. Additionally, inflation remains high, with the cost of essential goods such as food, housing, and medicine continuing to rise sharply.
Experts note that statistically, it is easier to achieve higher growth rates following a lower performance, such as the 2.9% growth in 2023. As a result, questions about the sustainability and inclusivity of this growth persist.
As the budget is unveiled, all eyes will be on Finance Minister Dr. Cassiel Ato Forson, who will need to reconcile these positive GDP growth figures with his assertion that the economy is still struggling. How he explains this contrast, while justifying the government’s position, will be critical to shaping the ensuing debates both inside and outside parliament.
