Ghana’s Economic Growth Momentum Holds Steady Despite PMI Dip
Ghana’s economic activity remained strong in the fourth quarter of 2024, underpinned by robust international trade, increased private sector lending, construction projects, and a boost in tourism-related spending, according to the Bank of Ghana’s Composite Index of Economic Activity (CIEA).
Consumer and business confidence improved in December, reflecting optimism about the economic outlook.
The Bank’s latest surveys showed that consumers were buoyed by positive expectations for future conditions, while businesses expressed confidence after meeting short-term targets and projecting further industry growth in line with improving macroeconomic stability.
However, the country’s Purchasing Managers’ Index (PMI) slipped to 49.4 in December, down from 52.5 in November, marking a contraction in activity.
The decline was attributed to a slowdown in business operations during the election period.
Despite the dip in the PMI, analysts suggest the broader economic outlook remains encouraging, supported by solid fundamentals and rising confidence across key sectors.
The sustained momentum in trade and investment is expected to provide a foundation for continued growth in 2025.
Economic Performance in 2024
Economic activity was stronger with higher-than-projected growth in the first three quarters of 2024.
The latest data from the Ghana Statistical Service showed that real GDP expanded at an annual rate of 6.3 percent during the first three quarters of 2024, relative to 2.6 percent during the corresponding period in 2023.
Non-oil GDP grew by 6.2 percent from 3.3 percent over the same comparative period. The strong growth outturn was mainly driven by gold production in
the industry sector.
In the fourth quarter of 2024, the Bank’s Composite Index of Economic Activity (CIEA) suggests that growth will remain strong, driven in large parts by international trade activities, increased credit to the private sector by banks, construction activities, and tourist-related spending.
