Ghana’s economic growth has been steady over the past decade, earning its status as a lower-middle-income country. However, the nation’s growth rate still trails behind East Asian countries, according to Indermit Gill, Senior Vice President and Chief Economist at the World Bank.
Speaking at the launch of the World Bank’s World Development Report 2024, Gill emphasized the need for Ghana to prioritize sustainable growth by managing public debt and promoting private sector investment. To achieve this, Gill stressed the importance of reducing Ghana’s reliance on borrowing and keeping the public debt-to-GDP ratio below 50 percent.
Ghana’s current public debt stands at 84.9% of GDP, a slight improvement from 92.4% in 2022. Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, echoed Gill’s sentiments. Quartey highlighted the need for the government to address its middle-income trap by increasing local innovation, transforming agriculture, and focusing on value addition.
He explained that this can be achieved through encouraging entrepreneurship and domestic investment, enhancing agricultural productivity, and promoting industries that add value to Ghana’s natural resources. Quartey also advocated for a mix of foreign and local capital to boost investment and a shift towards training in STEM fields to enhance productivity across industries.
By heeding these recommendations, Ghana can unlock its full potential, leveraging its well-educated workforce and rich natural resources to accelerate economic development. Gill noted that Ghana’s growth has been consistent, but lagging behind East Asian countries, and urged the nation to take proactive steps to address its economic challenges.
Ghana’s rich natural resources and educated workforce present a unique opportunity for growth. With prudent management of public debt and strategic investment in key sectors, the country can break free from its middle-income trap and achieve sustainable economic growth.
Ruth Abla ADJORLOLO
