The Institute of Statistical, Social and Economic Research (ISSER) has challenged the government to ensure an eight to 10 per cent annual growth for the country.
That, the Institute said, would be ideal for accelerated and sustainable development in the country, making businesses thrive, individuals enjoying good standard of living, and government raking in more taxes and other revenue.
Professor Peter Quartey, Director, ISSER, said this in Accra at the 32nd annual State of the Ghanaian Economy Report for 2022.
The report also had a review of Ghana’s economic performance up to the third quarter of 2023.
Speaking on the country’s Gross Domestic Product (GDP) rate for 2022 and third quarter of 2023, he said: “Ghana’s economy has shown signs of recovery and it’s likely to grow by about 3.0 per cent by end of 2023, all things being equal.”
In an interview with the Ghana News Agency after the event, he said: “Three per cent is not the best though better than the 1.5 per cent projection. What we need to accelerate the growth process is to grow between eight and 10 per cent.”
Prof Quartey explained that with a growth rate of less than eight or 10 per cent, “you cannot improve the livelihoods significantly. So, let’s grow at a much higher rate, then the poor can feel the macroeconomic growth in their pockets.”
Ghana in 2011 recorded a GDP of 13.6 per cent, largely on the back of strong performance of industry, which had a 36.2 per cent growth rate in that year.
The Ghana Statistical Service (GSS) attributed the growth to the inclusion of crude oil production in the mining and quarrying sub-sector.
However, the major cocoa and gold exporting country, has since 2011 recorded fluctuating economic growth.
In 2019, the World Bank, described Ghana as the world’s fastest-growing economy, but its economic performance, a year on (2020) hit 2.5 per cent, when the COVID-19 pandemic struck.
The Economics Professor explained that an eight to 10 per cent would be a “decent growth rate that will spur the Ghanaian economy, and make the government also see tax to revenue increases.”
“If our population is growing about 2.8 per cent per annum, in net terms, it’s only 0.2 change that you’re adding. That will not affect or move many people out of poverty,” Prof Quartey noted.
He urged government to cut expenditure, be disciplined with 2024 election expenses, and create an enabling environment for businesses by ensuring that inflation and interest rates were kept low, and taxes reduced.
Dr James Asare-Adjei, a former President, Association of Ghana Industries (AGI), indicated that the current economic challenges required that hikes in interest rate as well exchange rate and inflation pressures were contained to ensure stability.
“Interest rates are off the roof, so, if you’re borrowing at 40 per cent, what kind of business are you going to run to repay your loan? He quizzed.
“We look forward to a budget with a more practical outlay that will go to help in solving some of the key problems in the economy and make businesses grow. A situation where businesses can plan for three or six months or a year, so that, all cost can be projected,” he said.
He urged ISSER to work together with other institutions, including the media, to track national budget and policies, and help keep government in check in fulfilling their promises and constitutional mandate.
