Ghana’s economic growth prospects for 2024 continue to appear favourable in the eyes of both local and international economic institutions, as the latest institution to project a favourable expansion of the Ghanaian economy by the end of 2024 is the Institute of Statistical Social and Economic Research (ISSER) at the University of Ghana.
The Institute at the launch of the State of the Ghanaian Economy Report and Review of the third quarter performance of the country projected that the economy is likely to expand at the rate of 4.5% by the end of the year. This 4.5% projected growth rate is higher than the International Monetary Fund’s (IMF) latest revised projection.
The IMF in its World Economic Outlook in April this year projected a 3% growth rate for Ghana. But in the latest development, the fund says the economy can potentially grow at 4% rate.
The Director of the African Department of the IMF, Abebe Aemro Selassie explained that the new adjustment was made based on the recent favourable happenings in Ghana’s economy which are enhancing the country’s prospects for economic expansion.
“With the Press you understand deadlines, and when we were putting together World Economic Outlook report our deadline was the middle of April 2024, that is why we had the 3 percent projection. The IMF team went to Accra for the third review and as it was the case, we are now projecting close to 4 percent growth rate for Ghana,” the Director of African Department, Abebe Aemro Selassie explained.
But ISSER believes the economy can grow at a rate higher than the IMF projections justifying that the country’s growth trajectory is on the right path.
Prof. Peter Quartey, the director of ISSER explained that “our growth prospect remains positive. The IMF has revised and said 4%, but I am optimistic that we can 4.5%.”
To achieve this 4.5% projected growth, Prof. Quartey advised the government to prioritise investment in critical sectors of the economy such as agriculture and industry. He also called for fiscal discipline to keep the country’s debt stock under control.
“We need to invest in agriculture and industry because they are labour-intensive sectors. If we invest in them, they can create jobs. We need to review the fiscal responsibility law to include legislation of a debt ceiling to ensure that deficit and debt are contained within sustainable thresholds”, he said.
These projections by the IMF and ISSER are also higher than the government’s own projections. The 2024 Mid-Year Budget Review announced that the government expect overall GDP growth to increase to 3.1% from an initial projection of 2.8%.
If these growth projections are achieved and sustained, Ghana can fast-track the economic recovery while creating decent and sustainable jobs for the citizens.
