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2021: What will it take for Ghana's economy to bounce back?
At his second term inauguration speech, Ghana’s President Nana Akufo-Addo says the mandate of his government will be to establish a strong economy. Courage Kingsley Martey, Senior Economist at Databank Group joins CNBC Africa to discuss Ghana’s path to recovery.
Tue, 12 Jan 2021 11:53:41 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The challenges facing Ghana's economy post-COVID-19 and amidst slower growth projections are multifaceted, requiring a delicate balance between fiscal consolidation and growth support measures.
- The 'Ghana Beyond Aid' vision remains a cornerstone of the country's economic revival strategy, with a focus on industry, agriculture, and private sector involvement.
- Efficient debt management, including cost reduction and maturity extension strategies, is crucial to alleviate the burden of Ghana's high debt-to-GDP ratio and ensure financial stability.
Ghana's President Nana Akufo-Addo, at his second-term inauguration, emphasized the need for a resilient economy in the face of challenges. With the World Bank revising Ghana's growth forecast for 2021 from 3.4% to 1.4%, the country faces a tough road ahead. Courage Kingsley Martey, a Senior Economist at Databank Group, shed light on the priorities and challenges that lie ahead for President Akufo-Addo's administration. The key focus areas identified include fiscal consolidation, monetary policy support, private sector engagement, and managing the country's debt burden. Martey highlighted the need for a delicate balance between austerity measures and growth stimulus to steer Ghana's economy in the right direction. One of the key elements discussed was the 'Ghana Beyond Aid' vision, emphasizing the importance of industry, agriculture, and food security in driving economic recovery. Additionally, the Ghana Care Programme, estimated at 100 billion cedis over the medium term, aims to facilitate post-pandemic economic revival. Private sector involvement remains crucial, with a focus on value addition in the agricultural sector. The management of Ghana's debt-to-GDP ratio, currently hovering around 71%, presents another pressing challenge. Martey underscored the significance of optimizing the debt structure to reduce interest payment burdens and extend the maturity profile of the debt portfolio. As Ghana seeks to navigate the complexities of post-COVID economic recovery, strategic fiscal policies and prudent debt management will be vital in ensuring sustainable growth and stability. Overall, the path ahead for Ghana's economy requires a careful balancing act between austerity measures, growth promotion, and debt sustainability.
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