Africa-Press – Ghana. With strong economic growth, Ghana has successfully become the new economic hope for Africa. The economic growth in the country has been such that it witnessed a doubling of GDP per capita. With a 3% of average growth in the GDP continuously, Ghana has become a member of the top ten fastest-growing countries in the Sub-Saharan African region. Thanks to such economic growth, even poverty has drastically reduced in the country. Such economic growth is impressive, and one cannot help but wonder how Ghana made this possible?
Even though the average GDP growth of Ghana has been 3%, the trend is not constant. Irrespective of that, the country’s GDP growth is impressive, and its credit goes to the county’s natural resources. In the past few years, the people of Ghana have strongly relied on the country’s natural resources for economic development. In addition to that, even the trickle-down process has been quite efficient in the country, and as a result, many people have benefitted from it. Oil and gold play an important role in the country’s GDP.
Such development has made Ghana one of the fastest-growing regions of Sub-Saharan Africa. In addition to natural resources, other sectors important for economic growth are the manufacturing and service sectors and events like Lottery Sambad. The sum total of all the economic growth can be attributed to these sectors.
During the pandemic, Ghana faced a dramatic economic impact. The Coordinated Programme of Economic and Social Development Policies was created to speed up the country’s economic recovery. The prime objective of this policy is to double the GDP per capita between 2017 and 2024. The plan involves the overall development of the country and not the individual people, which can be generally assured by conducting Dhankesari. The plan is pretty aggressive but is required for the country’s economic development. If the policies’ objectives are met, Ghana’s manufacturing sector will further strengthen, the energy crisis will be solved, and the exports will have better productivity. The government will further be supporting this policy with the Ghana COVID-19 Alleviation and Revitalization of Enterprises Support program.
Also, the government has launched the Ghana Beyond Aid agenda, which is planning to improve business regulations, digitization, and public sector transparency. It will also make it easier for the Ghanaian businesses to get easy financing. The agenda will further create 420,000 productive jobs that are alone in the formal sector. If the plan meets its goals, Ghana will witness economic diversification, and its businesses will have a better environment to work. One of the prime goals of the government is to make Ghana the most business-friendly economy on the continent.
With such resources and government support, Ghana is headed to receive the upper-middle-income status by 2037. With previous estimations, it is believed that Ghana will be at its peak of real GDP in 2024. If Ghana makes quick improvements in the manufacturing sector along with the global innovator services, it has the potential to reach the same status by 2032. The future is bright for Ghana, but who is exactly creating this beautiful future?
The greatest growth of the GDP will come from the export-oriented global innovator services along with the manufacturing sector, provided that productivity increases in them.
Even though the economic growth of Ghana is commendable, it should further work to make this growth inclusive. Inclusive economic growth is possible by incorporating three key actions. The first and foremost priority of the country should be to create more jobs and give it a suitable environment to grow. Secondly, it will have to work with the link between poverty reduction and growth. Thirdly and most importantly, Ghana should prepare as soon as possible for the impact of climate change.
Inclusive economic growth in Ghana will further tackle the situation of inequality and will eradicate spatial disparities. To ensure inclusive economic growth, investing more in the public infrastructure and creating better job opportunities for the low-skilled workers is important. An enabling environment for growth is a must. It is because only economic transformation can ensure long-term inclusive economic growth. Ghana has successfully become the hope of Africa, and now it needs to focus on further enhancing its growth.
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