adminThe last 2 years for Ghana have been nothing short of tumultuous. Regarded as one of its worst economic periods in over 2 decades, Ghanaians, since 2022 have been subjected to varying levels of financial stress as a result of the country’s economic shortcomings.
Titled the ‘Macro Poverty Outlook: Country-by-country Analysis and Projections for the Developing World, this World Bank report which was recently released shows that Ghana’s economy stabilized in 2023H1 as a result of policies such as public debt restructuring, fiscal consolidation, and tighter monetary policy. This is, however, despite the fact that inflation remains over 40 percent, and public debt is unsustainable and in distress.
“In Q1 of 2023, GDP growth surprised to the upside with a rebound of 4,2 percent, compared to 3 percent in the first quarter of 2022, on the back of strong growth in services (10,1 percent) and agriculture (4,8 percent),” the report reads in part. However, the report also highlighted some of the persistent shortcomings in the country’s economy, including the performance challenges of some other sectors. “The industrial sector contracted by 3,2 percent as all industry sub-sectors (extractives, manufacturing, water and sewerage, and construction) shrank, with the exception of electricity,” the report also notes.
As mentioned earlier, the slow but eventual rebound of Ghana’s economy is a result of policies implemented by the government to undercut fiscal shocks that threaten to undermine the government’s recovery process. This included the cutback of capital expenditures, and lowering of interest payments, propelled by external debt service standstill. – Business Insider Africa
Bongani Ndlovu
Online Reporter