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The opposition National Democratic Congress is expected to win the general elections in December, according to a firm statement from Fitch Solutions.
It has made this audacious forecast three times now.
It did, however, note that in order to improve its chances of winning, the government will increase spending in the run-up to the general election in December 2024.
As stated in its most recent Country Report on Ghana, which was released on September 19, 2024, “We expect the government to boost expenditure leading up to the December 2024 general election to enhance its chances of securing victory. We remain of the view that the opposition National Democratic Congress will win the election”.
“Indeed, in Q2 [quarter 2, 2024], the government raised public sector wages by 31.0% year-on-year in nominal terms and tripled subsidies on petrol products, a move that aligns with Ghana’s historical trend of higher spending during election cycles. This will boost household purchasing power and support consumer spending over second-half of 2024”, it mentioned.
“All told, we forecast that private consumption will grow by 8.5% in 2024 and add 7.2pp to headline economic growth”, it added.
The article continues by saying that there are more negative threats to Ghana’s prospects for economic growth.
“In September 2024, the opposition National Democratic Congress staged nationwide protests alleging irregularities in the voter roll ahead of the December election. While our core view remains that the vote will be conducted peacefully, consistent with Ghana’s recent democratic history, prolonged protests or the outbreak of large-scale violence would disrupt commercial activities and reduce consumer and business confidence, ultimately leading to lower economic growth than we currently forecast”.
It also stated that a worsening of the Middle East crisis, which would raise oil prices globally, would lead to inflation rising again and complicate Ghana’s prospects for domestic demand.
Source: Ghanatodayonline.com
