LORINE TOWETT
The latest International Monetary Fund (IMF) report has rated Ghana as the fastest growing economy in the world. While this is the case for Ghana, IMF notes that many other African countries lag far behind.
IMF predicts that Ghana’s economy will grow at 8.8% in 2019, a growth rate it says is the fastest in the world. IMF attributes the projections to Ghana’s improved macroeconomic performance for the last two years and the strong economic growth in 2018. Last year, Ghana’s economy grew by 5.6%, putting it in sixth position.
Ghana is closely followed by Ethiopia with 7.7%, and Cote d’Ivoire with 7.5%. The growth rate of these two countries from 2018 to 2020 appears to be consistent, while Ghana’s growth is predicted to decline again in 2020.
Apart from Ghana and Cote d’Ivoire, South Sudan, Rwanda, Ethiopia, and Senegal, also top the list of the fastest growing economies in the world according to the IMF report.
While oil said to be the sector that is driving Ghana’s economy, other sectors like agriculture, manufacturing and services have shown positive growth. “We have discovered new oil fields and companies have started operating, they have intensified their operations,” says Adu Owusu Sarkodie of the University of Ghana.
Papa Ndiaye, head of the Regional Studies Division at the IMF’s African Department, has dissenting views though regarding Ghana’s growth rate. “We don’t expect this growth rate (of 8.8%) to be sustained over the medium term. And when you look at it in per capita, that is still smaller than what countries like China have experienced in the past,” Ndiaye said, adding that Ghana’s economic growth is expected to slow to a level of around 4.5 to 5%.
Neville Mandimika, an analyst with the Rand Merchant Bank, is also of the view that the IMF’s projection is “way too generous”.
Ghana has a thriving agricultural sector. Not long ago, 200,000 farmers received improved seeds and fertilisers hence increased yields. The sector remains a major backbone of Ghana’s economy.
According to Agriculture Minister Owusu Afriyie Akoto, the backup given to the sector has given it a major boost. “We are expecting a bumper crop because of the impact that this great programme has had on agriculture, even in its infancy,” he said.
On the IMF list, Angola came last among African countries; its economic growth rate has been predicted to be 0.4%. Last year Angola suffered a decline of 1.7%. South Africa’s growth rate has been projected to be only 1.2%, an increase of 0.4% from that of 2018. Resource-rich Nigeria will have a growth rate of 2.1% according to the report.
Innovation is viewed as a key driver of economic growth, and Ghana is keen to boost technological innovations and get more young people involved in sustaining and improving the economic performance.
Ghana has experienced significant economic growth in the recent past and is now categorised as a low-middle-income country – WeeTracker
