Ghana's GDP growth up 8.5% in 2017

Ghana's economy saw a significant boost in 2017, with a growth rate of 8.5%, up from 3.7% in 2016, according to fresh data from Ghana's statistical service. This growth has been attributed to key drivers such as the mineral sector and investments in the oil and gas industry. However, despite the impressive numbers, concerns about the inclusivity of this growth have been raised, with calls for more diverse and widespread economic development. To delve deeper into the implications of Ghana's economic performance, John Gatsy, an economist from the University of Cape Coast, shared insights in a recent interview with CNBC Africa. Gatsy highlighted that the primary drivers of Ghana's economic growth in 2017 were from the mineral sector and investments in the oil and gas industry. While these sectors have played a crucial role in driving growth, Gatsy emphasized that the current growth pattern is not as inclusive as desired. He stressed the importance of actively working to transform the economy's growth trajectory to ensure that the benefits are felt across all sectors of society. In terms of government policies to enhance inclusivity and foster growth in key sectors such as manufacturing and agriculture, Gatsy noted that there is a need for more effective deployment of policies to leverage the agricultural value chain. He mentioned the 'Planting for Food and Jobs' initiative but highlighted the necessity of integrating agribusiness into the agriculture value chain to promote value addition and maximize the sector's contribution to economic growth. Furthermore, Gatsy expressed concerns about the disproportionate focus on the mineral sub-sector in the government's blueprint, noting that the current structures in place may hinder the desired diversification of economic growth. He emphasized the importance of implementing strategic measures to encourage growth in sectors beyond natural resources to achieve a more balanced and sustainable economic development. On the topic of higher oil prices and increased government revenues, Gatsy pointed out that the benefits from elevated oil prices should ideally translate into higher capital expenditure for key social projects. However, he highlighted challenges such as project financing shortfalls and regulations on oil revenue utilization that limit the extent to which these revenues can be allocated for capital expenditure. Gatsy underscored the need for a careful balance between expenditure and revenue streams, especially considering the increasing burden of loan repayment costs compared to capital expenditures. Looking ahead, Gatsy emphasized the importance of addressing the structural constraints and policy inefficiencies that could impede Ghana's economic growth prospects. He called for a more holistic approach to economic development that prioritizes inclusivity, sustainable growth, and effective utilization of resources to ensure long-term prosperity for all segments of society.