Ghana’s 2024 election year promises a sweet and sour economic cocktail, according to Professor Godfred Bokpin, a seasoned economist.
While election-related spending is expected to inject a shot of adrenaline into the economy, Ghanaians are urged to celebrate with cautious optimism.
The political frenzy will be a boon for industries like hospitality, with hotels and car rentals likely experiencing a boom from politician’s frequent travels. This “harvest season” for some, however, shouldn’t obscure potential downsides.
Excessive liquidity pumped into the system could fuel inflationary fires, Professor Bokpin warns. The government’s challenge will be to navigate this delicate balance, ensuring growth without setting off price spirals.
Furthermore, the second half of 2024 might see a dampening of international funds flowing into the country. Investors often adopt a “wait-and-see” approach during election periods, leaving the Cedi potentially vulnerable.
Moderation is key, Professor Bokpin advises. The economic upswing might not instantly translate into everyone’s pockets. Patience and prudent policies are needed to ride the election wave sustainably.
To weather the potential storm, the government is urged to expedite agreements with creditors for the next IMF loan tranche and the cocoa loan. These financial anchors will help stabilize the Cedi and navigate the turbulent election waters.
Ghana’s 2024 promises a dynamic economic dance – a tango between growth and caution. Whether it’s a joyous celebration or a cautionary tale will depend on the government’s and citizens’ ability to navigate the rhythm of elections.