Ghana’s economic growth is expected to decelerate to 1.5 percent this year, fresh projections by the World Bank have suggested.
The slowdown is sharp drop from the 3.1 percent growth in 2022. It is also significantly low per the average of 61. percent pre-pandemic growth.
The World Bank in its latest Africa’s Pulse report revealed that generally, economic growth on the continent will fall to 2.5 this year from the 3.6 percent recorded in 2022.
This is being triggered by rising instability, weak growth in the region’s largest economies including South Africa and Nigeria, further exacebated by lingering uncertainty in the global economy.
The report by the world bank is an analysis of issues shaping Africa’s Economic Future.
Per the report, Ghana’s growth rate will drop by almost 50 percent.
Categorized under non-resource-rich countries, factors that will drag down Ghana’s growth prospects is the persistent high inflation rate lower credit as a result of elevated interest rates, and weakness in the energy sector.
This will lead to reduction in household and industry energy consumption levels.
That is not only Ghana woes, but other elements such as the quest to achieve fiscal consolidation and low agric yields especially in the cocoa sector has been identified as major hits by the World Bank.
However, the only sector anchoring the growth is the extractive industry due to increase in demand for the oil and gold from Ghana.
But will reverse this slowdown in growth? According to the World Bank this can achieved with the expectations that the country’s debts will be sustained and that, the country’s fiscals will be consolidated plus the elimination of monetary financing of budget deficit.
In the meantime, Finance Lecturer at the University of Ghana Business School, Dr. Patrick Assuming.
He believes that Ghana could expand its growth figures if it remains fiscally disciplined as the electioneering period approaches.
He has also called for a boost in employment in the real sectors of the economy to drive the GDP growth rates.