World Bank conducts ‘Cut Free Diagnostic’ study of the Ghanaian economy

World Bank conducts ‘Cut Free Diagnostic’ study of the Ghanaian economy

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The World Bank is conducting a study-‘Cut Free Diagnostic’-of the Ghanaian economy.

According to the Bretton Wood institution, the study will reveal whether the Ghanaian economy will be sustainable in the coming years.

The Regional Director for Sustainable Development, West and Central Africa of the World Bank, Simeon Ehui told Joy Business during a webinar on the theme the “Next Generation Africa Climate Business Plan (NG-ACBP)”

Ghana’s economy is expected to grow at a rate of about 1.96 percent this year. This will position it as one of the highest in the world despite the covid-19 pandemic.

However, Mr. Ehui told Joy Business that Ghana’s economy will not be sustainable going forward if the current growth path of natural resources continues.

“We are currently doing what we call a ‘cut free diagnostic’ for Ghana which will be published soon, where we’re going to look at the sustainability of growth of the economy of Ghana which may not be sustainable in a few years if you continue the growth path that’s dependent on natural resources base,” he said. 

Quarter Two GDP

Meanwhile, the economy contracted in the second quarter of this year, recording a negative 3.4 percent growth rate.

According to figures released by the Ghana Statistical Service, the heavy fall was largely attributed to some restrictions on activities in the economy, which virtually came to a standstill during the coronavirus outbreak epic period.

The agriculture sector was the only one that recorded a positive growth rate of 2.5%.

Quarter One GDP

The economy grew by 4.9% in the first quarter of this year, at a time, the coronavirus pandemic has reached an alarming rate in Europe, Asia and the United State of America.

According to the GSS, the services sector recorded the highest growth rate of 9.5% followed by the agriculture sector, which expanded by 2.8% and the industry sector by 1.5%.

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