Ken Thompson underestimates IMF and World Bank growth forecasts for Ghana

Company News of Monday, April 15, 2019

Source: citibusinessnews.com

2019-04-15

Kenneth Thompson, managing director of Dalex Finance, downplayed the IMF and World Bank forecasts for Ghana's economy.

The IMF and the World Bank forecast a growth rate of 8.8 per cent and 7.6 per cent, respectively, of the Ghanaian economy, making it one of the fastest growing in the world in 2019.

The forecasts of the two organizations are higher than those of the government, namely 7.2%.

The two organizations said growth would be driven by the oil sector, which recovered last year.

While the World Bank estimates that other sectors, including extractive industries and services, will also contribute significantly to growth, the IMF believes that the government's fiscal policies and the management of macroeconomic indicators, including inflation, indicate that the economy will be robust.

However, Kenneth Thompson speaking to Citi Business News on the sidelines of a forum organized by the Chartered Institute of Management Accountants (CIMA), said that this might not be achieved because problems affecting the country's economic fundamentals are still to come up.

"On paper, they are beautiful, I mean, the numbers are nice, but you have to remember that the growth comes from the oil sector. And very few people participate in this sector, the number one. Second, most of the money stays out of the country, so the impact is minimal. I mean that's the reality.

He warned the government not to be complacent, as it would mean nothing to Ghanaians if they do not feel the value of the cedi in their pockets.

"And the only time we can believe in the projection is if we feel it in our pockets and now we do not feel it in our pockets, that's all it's about," he said. he declares.

According to him, as long as we do not attack gold, cocoa and oil to other non-traditional export products, it will be difficult for the economy to develop at this speed.

"For me, the numbers are excellent but that does not mean anything. As far as I can remember, in terms of fundamentals, they said that Ghana is a producer of primary products and that we have to diversify, has that changed? It has not changed. Our main exports are gold, oil and cocoa. Has this changed? It has not changed, so what are we talking about?