Economist, Dr. Patrick Asuming, is optimistic that Ghana’s economy will record a higher growth rate by the end of this year.
Provisional data from the Ghana Statistical Service shows that Ghana’s economy expanded by 5.4% in 2021, far higher than the 0.4% recorded in the year 2020.
The new figure exceeds the 2021 GDP growth rate of 5.1 percent captured in the 2021 mid-year budget, and projections made by other stakeholders like the International Monetary Fund.
Dr. Asuming, in a reaction to the new figures, expressed delight at the bouncing back of the economy.
“This is very good news because it’s not just about the new figure being higher than what the government and international outlets projected. But when you look at the quarter by quarter numbers, you’ll see that throughout 2021, we grew faster each quarter than the preceding quarter and that tells you that the economy’s recovery is well and truly underway. Also, some of the sectors that suffered the most during the COVID have also recovered.”
Ghana is seeking to return to a path of economic growth comparable to pre-pandemic levels but several global and local factors are militating against projections.
In 2020, GDP growth also dropped to 0.4 percent, compared to a projected growth rate of 6.8 percent before the pandemic.
But the Ghana Statistical Service’s recent data shows that Ghana’s economy expanded by 5.4 percent in 2021 exceeding the projected GDP growth rate of 5.1 percent which was captured in the 2021 mid-year budget.
In the 2022 budget, the government projected an overall real GDP growth of 5.8 percent; with non-oil real GDP growth of 5.9 percent.
The International Monetary Fund has also cut Ghana’s growth rate forecast for 2022 to 5.2%, down from the 6.2% it earlier projected.
These projections, in addition to the latest figures from the GSS demonstrate that there could be some hope on the horizon for Ghana, according to Dr Asuming. He believes that the economy will experience further expansion this year.
“We expect that we will do better in 2022. Earlier this year, some of the remaining restrictions have been released. For instance, the land borders have been opened. The uncertainty in the global economy that has been brought by the Russia-Ukraine crisis may lead to a small dip in the GDP in quarter one in particular but overall, I expect that the recovery of the economy will continue to gather more momentum this year,” he hoped.