Ghana has emerged the fastest growing economy in the world according to a recent report by the International Monetary Fund (IMF). However, many other African countries did not perform well in the report.
The world financial body also projected an 8.8 percent economic growth for the West African country. According to the IMF Ghana experienced a surge in economic growth due to its enhanced macroeconomic performance for the last two years and the strong economic growth in 2018. Last year, Ghana’s economy grew by 5.6 percent, putting it in the sixth position.
Ivory Coast features next to Ghana with 7.5 percent and Ethiopia with 7.7 percent. Apart from Ghana and Ivory Coast, South Sudan, Rwanda, Ethiopia, and Senegal, also top the list of the fastest growing economies in the world according to the IMF report.
Oil is the major driving force of Ghana’s economy but the good performances of other sectors like agriculture and manufacturing services cannot be overlooked. Adu Owusu Sarkodie from the University of Ghana in an interview with DW said, “We have discovered new oil fields and companies have started operating, they have intensified their operations.”
On a cautionary note, Papa Ndiaye, Head of the Regional Studies Division at the IMF’ said, “We don’t expect this growth rate (of 8.8 percent) 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.”
He added that Ghana’s economic growth is expected to slow to a level of around 4.5 to 5 percent.
One Neville Mandimika, an analyst with the Rand Merchant Bank is also of the view that IMF’s projection is “way too generous”.
Ghana can boast of a thriving agriculture sector which is a major boosting factor for its economy. Only recently, 200,000 farmers were provided with improved seeds and fertilizers which translated into bountiful yields. Agriculture Minister Owusu Afriyie Akoto said, “We are expecting a bumper crop because of the impact that this great program has had on agriculture, even in its infancy.”
According to the IMF report, Angola came last in economic performance, its economic growth rate is projected to be 0.4 percent. South Africa’s growth rate has been projected to be only 1.2 percent, an increase of 0.4 percent from that of 2018. Resource-rich Nigeria will have a growth rate of 2.1 percent.
According to economists, innovation is key in building and sustaining an economy as it increases productivity. Ghana, however, has resolved to boost innovations and ensure that young people are involved in contributing to the country’s economic performance.
