Indermit Gill, Senior Vice President and Chief Economist at the World Bank, urged Ghana to boost its economic growth while carefully managing public debt.
At the launch of the “World Development Report 2024” in Accra, Gill pointed out that despite being a lower-middle-income country for over a decade, Ghana’s growth rate has not kept pace with that of East Asian nations.
“Ghana’s growth has been positive, but it isn’t high enough. The key challenge is to increase this growth without overly depending on external borrowing,” Gill stated.
He recommended that Ghana aim for a public debt-to-GDP ratio of no more than 50 percent to foster a conducive growth environment.
Gill cited the examples of South Korea and China, which have maintained high growth rates for decades, and expressed confidence that Ghana, with its educated workforce and rich natural resources, can achieve similar success.
However, he stressed the importance of balancing public and private investment, asserting, “It is private investors who will drive Ghana towards a high-income economy, not the government.”
He also encouraged Ghana to tap into its diaspora and enhance its integration with global markets.
Despite the challenging global economic climate, Gill affirmed that Ghana is well-positioned to improve its domestic conditions and achieve sustainable growth.
