Elections May Weigh on Growth Prospects
Governor of the Bank of Ghana, Dr. Ernest Addison, has highlighted that rising uncertainties related to elections in numerous countries could impact global growth prospects in the latter half of 2024. This concern played a significant role in the MPC’s decision to maintain the policy rate at 29%.
The year 2024 is marked by a notable number of elections in at least 97 countries, encompassing nearly half of the global population.
During its three-day meeting, which concluded on Friday, June 26, the Monetary Policy Committee reviewed global and domestic macroeconomic conditions and assessed the risks to inflation and growth. These deliberations were instrumental in determining the appropriate stance for the monetary policy rate.
Globally, economic growth in the first quarter of 2024 exceeded expectations, driven by improvements in the services sector in the Euro area and increased consumer spending and policy support in China. However, challenges such as dwindling pandemic savings, cooling labor markets in advanced economies, and the uncertainties surrounding elections this year were identified as potential risks to growth in the latter part of 2024.
These uncertainties, the Committee believes, could impact Ghana, which is also heading to the polls in December. This consideration, among others, led the Committee to maintain the policy rate at 29%.
