How can Ghana improve growth momentum?
Ghana's GDP recorded a slow growth in the second quarter of this year by 3.2 per cent from the 3.3 per cent in the first quarter. Meanwhile, the government expects economic growth rate to print at 1.5 per cent this year. John Gatsi, Dean, University of Cape Coast School of Business, joins CNBC Africa for this discussion.
Thu, 21 Sep 2023 12:28:29 GMT
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AI Generated Summary
- Critical sectors like construction and water are experiencing negative growth, raising concerns about job creation and sustainability.
- Improvements in inflation are not yet reliable trends, indicating ongoing economic challenges.
- The monetary policy environment in Ghana remains tight, highlighting the need for cautious decision-making and strategic interventions.
Ghana's GDP growth has shown a slowdown in the second quarter of this year, dropping to 3.2 percent from the 3.3 percent recorded in the first quarter. The government is projecting a 1.5 percent economic growth rate for the year. John Gatsi, the Dean of the University of Cape Coast School of Business, expressed his concerns about the components of the GDP figures, highlighting that critical sectors like construction and water are experiencing negative growth, which is not addressing the pressing issue of job creation and sustainability. This raises questions about the effectiveness of recent economic strategies in Ghana. Gatsi emphasized that while there have been improvements in inflation, they are not yet reliable trends to depend on. The country still faces challenges such as high inflation, volatile exchange rates, and sluggish production. The monetary policy environment remains tight, with a 30% policy rate, indicating the need for cautious decision-making. Despite ongoing efforts, Ghana's economy continues to grapple with significant hurdles that require strategic interventions and sustained focus on sustainable growth and job creation.
