Ghana is growing below potential – Speaker

General News on Friday, April 5th, 2019

Source: Myjoyonline.com

2019-04-05

Ghana's economic fundamentals are strong, said Vice President Mahamudu Bawumia at the plenary session of the economic management team held on Wednesday, but no senior financial expert is sold.

Professor Godfred Alufar Bokpin, an economist and professor of finance at the University of Ghana, endorsed Dr. Bawumia's remarks on Thursday, but said that despite these numbers, the country was growing well below its potential.

"There is growing inequality in Ghana," said Bokpin, also an IMANI Fellow.

He explained that most of the capital in the country comes from foreign investors. In exchange, Ghana provides them with resources, but this return on capital is low for the inhabitants.

Professor Godfred Alufar Bokpin is an economist, professor of finance at the University of Ghana and IMANI Fellow.

"Foreign investors benefit, but we are lagging behind," he said. "Growth is driven by internal sectors and the creation of jobs."

The production of hydrocarbons, mining, oil and gas were economic drivers of the economy last year, but because of foreign capital, "we recorded a growth that we could not maintain ".

But of all the problems affecting Ghana's economy – even more so than the cedi, which is currently fighting the dollar – resource allocation and efficiency have been the main challenge for the country.

This year, Ghana hopes to generate $ 45 billion in tax revenue, but we will not be able to maintain these funds if the government spends as it did last year, did it? -He insists.

Twenty-three billion cedis were spent solely on salaries. Eighteen billion went to debt management. Capital expenditure? Eight billion.

"[Government] imposes restrictions on growth. This is inadmissible. "

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In Wednesday's plenary session, Bawumia congratulated his business team for surpbading the economic growth rate of sub-Saharan Africa.

In 2017, the Ghanaian economy grew by 8.1 percent, "one of the highest in the world," he said.

He praised the country's robust GDP and indicated that non-oil growth increased from 4.6% to 5.8%, pushing per capita income to 9856 GH ¢. an increase of 30% compared to 2016.

"Our challenge is to make distribution equitable," he said. "It's the ultimate goal."