Economic growth exceeds pre-COVID-19 levels — Finance Minister

The country's first half economic growth has exceeded the pre-COVID-19 pandemic levels, the Minister of Finance, Dr Mohammed Amin Adam, has pointed out.

He explained that the 2024 half-year growth of 5.8 per cent was 0.4 percentage points higher than the growth recorded in the same period five years ago.

The Finance Minister said the growth trajectory was now attracting multinationals, including those that left the country in difficult times such as Virgin Atlantic Airlines, to return with their investments.

"The fact is that the half-year growth of 5.8 per cent recorded this year is the highest in the last five years. It is fascinating to note that the growth of 4.8 per cent in quarter one and 6.9 per cent in quarter two was driven largely by industry and agriculture sectors. For quarter two, all three sectors, including services, drove the growth,” he stated.

"What this means is that we are back on track. It also means that our policies to support the private sector are having significant impact. Economic actors in these sectors are receiving needed support," the minister said at the Second Quarterly Economic Roundtable (QER) in Accra yesterday.

The forum

The QER, held in collaboration with the Institute of Statistical, Social and Economic Research (ISSER of the University of Ghana (UG), is meant to foster dialogue between policymakers and academia to promote policy formulation through research results.

The second edition is on the theme: "Driving economic growth through small and medium enterprises (SMEs)".

Speakers and panellists included the Vice-Chancellor, University of Ghana (UG), Professor Nana Aba Appiah Amfo; Senior Country Manager for Ghana, Liberia and Sierra Leone of the International Finance Corporation, Kyle Kelhofer; Economist and former Vice-Chancellor of UG, Emeritus Prof. Ernest Aryeetey; Director, ISSER, Prof. Peter Quartey; President of the Association of Ghana Industries (AGI), Dr Humphrey Kwesi Ayim-Darke, and the Chief Executive Officer of the Ghana Enterprises Agency (GEA), Kosi Yankey-Ayeh.

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It was organised by the Ministry of Finance in partnership with ISSER.

Stellar growth

Dr Amin Adam stated, however, that, “we know that future stellar growth is not guaranteed. To manifest our growth prospects, we need to mitigate key risks”.

"Managing these risks require us to reconsider policies and reinforce strong partnerships with stakeholders, especially with the SME sector," the Finance Minister said.

He said that was the reason the ministry was excited that the participants had gathered for the second QER to focus on small and medium enterprises (SME) development, a key anchor for growth in the economy. 

Knowledge generation hub

Prof. Amfo said through the QER, the university would strengthen its position not only as a knowledge generation hub but also to influence public policy, provide informed insights, foster innovation and promote collaboration with key stakeholders for national development.

He said the university was home to thought leaders and think tanks who were eager to contribute to Ghana's development process by sharing knowledge, experiences and evidence-led insights.

"The QER, therefore, has found a worthy home here at the University of Ghana," she added.

SMEs contribution

For his part, Mr Kelhofer underlined the importance of SMEs in the country's economic transformation.

He said as an essential part of the economy, SMEs contributed majority of businesses, drove job creation, innovation and played a key role in contributing to the gross domestic product (GDP).

"This roundtable discussion is, therefore, timely in reinforcing the need for developing and supporting the creation of an enabling environment for SMEs to unlock the full potential of this vital sector of the economy,” the IFC Senior Country Manager said.

"This approach aligns with how the IFC operates, by bringing together like-minded individuals to deliberate and find solutions to key issues that impact economic growth and improve the lives of all, especially the underserved," Mr Kelhofer said.

Immense growth

Prof. Aryeetey said the SME sector held immense potential for driving economic growth in the country.

He said the sector was constrained by several factors that affected productivity, and those related to the business environment and innovation were key.