The International Monetary Fund (IMF) has projected that Ghana’s economy is likely to rank 12th among 49 Sub-Saharan African nations in 2022 with an expected growth rate of 5.2%.
Ghana is expected to jointly rank 12th position with Cape Verde among league of Sub-Saharan African economies. In West Africa, the nation will place 6th again with Cape Verde.
Although the expected growth of 5.2% is the lowest among other economic researchers, the World Bank has projected a growth of 5.5% for 2022. Also, the parent company of Stanbic Bank, Standard Bank has predicted an economic growth rate of about 6.2% in 2022 and 6.8% in 2023 amidst tough times for the Ghanaian economy.
The Word Bank in its latest report said the government’s significant progress in vaccinations and the further easing of COVID-19 restrictions will stimulate demand and supply within the economy. But, it pointed out that the country’s ability to tap the Eurobond market may further diminish, whilst the foreign exchange reserves could remain under pressure unless the government acquires alternative sources of external financing.
“As global risk may worsen further in the first-half of 2022, and Ghana’s ability to tap the Eurobond market may further wane. Foreign exchange reserves could remain under pressure in 2022 — unless the government acquires alternative sources of external bilateral and multilateral funding.”
The 5.2% expected expansion in the economy in 2022 will be slightly lower than the Gross Domestic Product (GDP) growth rate recorded in 2021.
In 2021, the IMF projected a growth rate of 4.2%, but the economy expanded by 5.4%, according to provisional estimates from the Ghana Statistical Service.
This was as a result of strong growth in the Services sector (9.4%), particularly Information, Communication and Technology (33.1%) and Agriculture (8.4%), particularly the Fisheries (13.4%) sub sector.
In 2023, the Fund forecasts a growth rate of 5.1%, which will place the country in the 21st position in the league of African economies.
This is due to the expected strong growth rate by most African economies.
In 2022, Niger will become the fastest growing economy in Sub Saharan Africa with a growth rate of 6.9%, whilst Senegal will lead the league of African economies in 2023 with 9.2% in the economy.
Meanwhile, Sub-Saharan Africa is expected to grow at a rate of 3.8% in 2022 and subsequently 4% in 2023.
COUNTRY GDP RANKING
Niger 6.9% 1st
South Sudan 6.5% 2nd
DR Congo 6.4% 3rd
Rwanda 6.4% 3rd
Mauritius 6.1% 5th
Equat. Guinea 6.1% 5th
Coted’lvoire 6.0% 7th
Benin 5.9% 8th
Kenya 5.7% 9th
The Gambia 5.6% 10th
Togo 5.6 10th
Ghana 5.2% 12th
Cape Verde 5.2% 12th
By Adnan Adams Mohammed