International audit and consulting firm, Deloitte has observed that the upcoming presidential elections in December will be decided by the welfare of Ghanaians and the state of the economy.

In its West Africa economic outlook for August 2024, the firm noted the sub-region’s economy remains handicapped by high inflation, a high interest rate environment, currency weakness, and elevated debt levels. It is projected that these problems will linger until the end of the year.

“Ghanaians are going to the polls this December. The current state of the economy and citizens’ welfare will factor heavily into how voters evaluate campaign promises and determine the next leader of the nation, an economy heavily dependent on cocoa and gold. The election outcome will weigh on policy direction, as well as investor and market sentiment,” the report read in part.

The report noted that the Ghana Cedis’ rapid depreciation against the dollar has affected the country’s ability to import raw materials and equipment required to boost output.

According to Deloitte, while the economy is expected to do well in the short to medium term, the cocoa sector will incur as a result of the ongoing climate crisis.

“The outlook for the Ghanaian economy is favorable in the short to medium term. However, there are downside risks emanating from the forthcoming general elections in December, high inflation, and elevated interest rates, all of which are weighing on private consumption and investment spending in 2024. However, a faster pace of recovery is expected from 2025 onward, driven by an anticipated decline in consumer prices, which will trigger a further cut in interest rates.

“The country’s cocoa output—one of the main drivers of the economy—will encounter volatility as a result of climatic conditions, smuggling, diseases (cacao swollen shoot virus and the black pod, for instance), and global commodity price fluctuations,” the firm’s outlook captured.

The report warned that election-related spending in the lead to the polls could trigger a demand-pull inflation.