President John Mahama says he is optimistic Ghana’s economic growth will inch up to about 4 percent by the end of 2016 and increase marginally to about 6 percent in 2017.
According to the President, the figures will reflect his government’s commitment to address major challenges facing the economy.
The World Bank in its latest report pegged Ghana’s economic growth at 3.3 percent for 2016 and predicted an increase to about 4.5 percent in 2017.
The Bank cited the stability in the country’s power sector, increased oil production and investor confidence as the factors accounting for the growth.
But speaking on Sunrise FM in Koforidua as part of his visit to the Eastern region, the President was confident an end to the power crisis will ultimately boost economic growth.
“The economy is more resilient today than it was in the past… this economy is not in crisis and it is growing … the World Bank predicted 3.3 percent for Ghana in 2016 and 4.5 percent for 2017. I am more bullish and I believe Ghana will grow more about 4 percent between 3.8 to 4 percent and we predict that in 2017, Ghana’s economy will grow above 6 percent, we have resolved the power crisis; we have been able to match demand and supply and so the electricity crisis that hit us is gradually becoming a thing of the past.”
Mr. Mahama further reiterated government’s preparedness to guard against any adverse impact the shortage of gas might have on the production of gas.
“The FPSO is shut down but we have made continuous arrangements and we are firing most of the power plants using crude oil… we have the structural changes to ensure that the utility services will provide us with power.”
World Bank on Ghana’s economic growth
The World Bank early this week predicted that Ghana’s economy will experience some moderate growth this year.
The Bank says Ghana will grow by 3.3 percent compared with a sub-Sahara African average of 3 percent.
The World Bank however added that despite the 3.3 percent projected figure, it believes growth will inch up to an average of 4.5 percent between 2017 and 2018.
Meanwhile the Acting Chief Economist for the World Bank, Punam Chuhan-Pole has urged African countries whose revenue have plunged due to falling commodity prices, particularly oil and gas, to consider reforms that will unleash their growth potential.
“There is the need to build buffers to rationalize government’s expenditure and wage bill and strengthen public financial management and also improve the quality of spending public investments … for most countries in the region, they also need to strengthen domestic resource mobilization, the strength of taxes collected is quite low and it is important to increase the tax contribution of the non –resource sector and to widen the tax base as well as strengthen tax administration and streamline taxes.”She stated.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana