The World Bank is forecasting a 5.5% expansion of the Ghanaian economy in 2022.
This rate is marginally below the projected 5.8% expansion of Ghana’s economy by the Government of Ghana. It is also marginally below the 6.2 % projected by the International Monetary Fund (IMF).
Commenting on the forecast, an economist with the Institute For Fiscal Studies, Dr. Said Boakye tells EIBs Constance Serwaa Asubonteng that, achieving any of this target would be great for the Ghanaian Economy as it would signify economic recovery.
He however mentions that, the government would have to pay much attention to the mining and oil sectors of the economy if this has to be achieved.
“Mining and quarry sectors have been a problem for the country for the past two years. In 2020, mining and quarry grew by -11%. In 2021, it has been forecasted to grow by -10.5%. Because of that it has affected industry growth. In that, industries that rely on the mining sector for raw materials like metal processing companies, do not get enough supplies. 2022, the government has forecasted mining and quarry to 6.5%, however as the actual growth in the past 2 years haven’t been encouraging, it needs much attention or the country will miss the forecast.”
He further explains that another area that needs attention is the fiscal pressure.
“Ghana’s budget deficit needs to be looked at if the country can achieve an expansion above 5%. The government would have to cut down on its expenditure on good and services, construction, salaries, etc. while looking at putting in measures to increase revenue.”
The World Bank also forecast a growth rate of 5% in 2023 for the Ghanaian economy. For Sub- Saharan Africa, the report states, “Growth in SSA is projected to firm slightly during the forecast horizon, to 3.6 percent in 2022 and 3.8 percent in 2023. This outlook is nearly a full percentage point below the 2000-19 average, however, reflecting the continued effects of the pandemic, reduced policy support, and policy uncertainty and worsening security situation in some countries.”