According to the African Development Bank (AfDB), the economies of Ghana and Nigeria are poised to experience the slowest economic growth in 2024 compared to their peers in the West African region.
The AfDB’s macro-economic performance outlook for 2024 forecasts that the West African region will grow by 0.8 per cent to 4.0 per cent this year, with a further increase to 4.4 per cent projected for 2025.
However, Ghana and Nigeria are expected to lag behind, with growth rates falling below the regional average.
In a statement, the AfDB noted, “Except for Nigeria and Ghana, all countries in the region are projected to grow at least 4 percent in 2024.”
Regarding Nigeria’s economic forecast for 2024, the AfDB anticipates a growth rate of 2.9 per cent, improving to 3.7 per cent by 2025.
This modest growth trajectory is primarily linked to recent policy reforms, including the elimination of fuel subsidies and efforts to consolidate foreign exchange markets.
Prof. Chris Onalo, CEO of the National Institute of Credit Administration (NICA), expressed concerns about the slow economic growth, stating, “In the new economic dimension, businesses should be driven strictly on credit. The new dispensation should promote buying and consumption that is strictly credit driven.”
Similarly, Ghana’s economic growth is expected to slightly pick up to 2.8 per cent in 2024, from a sluggish 1.5 per cent in 2023. Persistent inflationary pressures are cited as a key factor hindering Ghana’s economic revival and growth prospects.
The analysis attributes this slow pace to persistent inflationary pressures that continue to strain household budgets, implying that inflation remains a critical barrier to Ghana’s economic revival and growth prospects.
Ghana and Nigeria, despite facing similar economic struggles, are navigating their paths toward recovery amidst the broader West African region’s more optimistic growth projections for 2024.
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