By: Rachel Asamoah
Senior Vice President and Chief Economist at the World Bank, Indermit Gill, has called on Ghana to accelerate its economic growth while carefully managing public debt.
Speaking at the launch of “World Development Report 2024” in Accra, Gill noted that although Ghana has been a lower-middle-income country for over a decade, its growth rate has not been fast enough compared to East Asian nations.
“Ghana’s growth has been positive but not high enough. The challenge is to increase the growth rate without relying too much on external borrowing,” Gill said.
He advised that Ghana should aim for a public debt-to-GDP ratio of no more than 50 percent to create a growth-friendly environment.
Gill highlighted the success of countries like South Korea and China, which sustained high growth for decades, and believes Ghana, with its educated workforce and abundant natural resources, can achieve similar results.
However, he emphasized the need for a better balance between public and private investment. “Private investors will lead Ghana into a high-income economy, not the government,” he stressed.
He also encouraged Ghana to leverage its diaspora and integrate more with global markets.
While the global economic environment is becoming tougher, Gill affirmed that Ghana is well-positioned to improve its domestic climate and achieve sustained growth.
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