| The Institute of Economic Affairs (IEA), Ghana, has been publishing a bi-monthly Economic Outlook that examines recent developments in the Ghanaian economy and the future outlook. The Economic Outlook provides the public with the IEA’s independent views on the economy. The Outlook also features one or two additional topics deemed of national or international importance. This edition of the Outlook covers the period September-October, 2024 and focuses on economic growth, inflation, exchange rate and public debt. It also features the Bank of Ghana’s recently-announced Gold Coin Programme and the recently-concluded BRICS Summit in Russia. | 7 Nov 2024 | Download | ||
| Ghana has been facing multiple economic challenges in recent years, the result of a combination of external shocks and domestic policy shortcomings. Economic growth moderated to 3.1% in 2022 from 5.1% in 2021and, in 2023, growth was further down at 2.9%. In the first quarter of 2024, the Ghana Statistical Service (GSS) reported a higher growth of 4.7%. However, the IMF projects the year’s growth at a lower rate of 3.1% [IMF Executive Board’s Second Review of Ghana’s ECF, June 28, 2024]. The growth rates are generally below the potential of the country, given its abundant resources and capacities. Inflation rose sharply from 12.6% in 2021 to a near-record 54.1% in 2022 before declining to 23.2% in 2023. The latest recorded figure is 22.8% for June 2024. While inflation has been on the decline, it remains high by international standards. Moreover, it has had a severe compounding effect on the cost of living. The fiscal deficit was -12.0% in 2021 and -11.8% in 2022, before declining to -3.6% in 2023, due to the impact of the Domestic Debt Restructuring Programme (DDEP) along with the suspension of external debt servicing. The deficit is projected to remain low at 4.7% in 2024. | 14 Aug 2024 | Download | ||
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| Dr. Maame Adwoa Gyekye-Jandoh | 12 Jun 2024 | Download | |
| Upon the advice of Western financiers who have provided assistance to Ghana for decades, the country has been implementing liberal economic policies that largely emphasise free markets, free trade, private enterprise and limited government. But are these policies suited to a developing country like Ghana? What has been the impact of these policies on the Ghanaian economy? Are there alternative policies to correct any negative effects of liberal policies in the country? This paper seeks answers to these questions. In general, it finds that Ghana may have taken liberal policies too far as these policies seem to be unsuited to less mature economies. In particular, the adoption of unbridled liberal policies has: i) perpetuated production of low value-added commodities; ii) inhibited industrialisation and transformation of the economy; iii) exacerbated macroeconomic imbalances; and iii) stifled growth. Based on the experiences of western countries in their early stages of development and that of more successful Asian countries, the paper recommends direct state intervention policies to unleash the country’s growth potential. | Dr John Kwakye | 25 Jul 2020 | Download | |
