Abigail Padi, Dean of the Faculty of Business Studies at the Takoradi Technical University, says Ghana’s economic growth has been uneven over the past years, citing the gross domestic product as an indicator for measuring the economic recovery.
Madam Padi, in an interview on Beach FM, mentioned that the service and industrial sectors have driven growth, while agriculture, a key contributor to the economy, is facing some challenges.
Madam Padi notes that the country’s infrastructure is inadequate, making it difficult for farmers to access markets and transport goods efficiently. These challenges have contributed to inconsistent economic growth, with the country experiencing certain growth after the pandemic but not sustaining it.
According to her, addressing the challenges in the agricultural sector can be a game changer in the economy.
Reacting to the Finance Minister’s claim that the economy is recovering, Madam Padi remarked that “a strong recovery should ideally stabilise prices,” but that is not the situation on the ground.
Inflation remains a concern, with prices and the cost of living remaining high. The exchange rate has also harmed the cedi, affecting the cost of imports. While the government has implemented interventions to manage the exchange rate, including support from the IMF and policies from the Bank of Ghana to stabilize the cedi, more needs to be done.
She said Ghanaians struggle to make ends meet given the current state of the economy.
Ghana’s debt ratio is another critical issue, with the country’s debt-to-GDP ratio standing at around 80% after the COVID-19 pandemic. This means that a significant portion of the country’s revenue is used to service debt rather than invest in development projects.
Madam Abigail Padi suggests that a stable recovery should involve acquiring sustainable financial and physical resources, as well as developing the economy in terms of exports and imports to reduce the burden on the cedi. She also emphasizes the importance of addressing debt creation and implementing programs to support entrepreneurship and job creation.
Authors – BA & PMA
