Economy On Track - Institute of Economic Research

The Co-ordinator of the Institute of Statistical, Social and Economic Research (ISSER), one of the foremost research institutions of the University of Ghana, Legon, Professor Kwadwo Asenso-Okyere has said that Ghana's economy is steadily moving towards macro-economic stability which ought to be consolidated in the coming fiscal years. This position was articulated at the launch of "The State of the Ghanaian Economy Report" for the year 2001 at the Golden Tulip Hotel in Accra yesterday.

In his presentation on the overview and outlook of the economy for the year 2001 which is predicated on the report Prof. Asenso-Okyere attributed the current macro-economic stabilization to a conspectus of factors of which the tight monetary and fiscal policy adopted by the current government was one. With such a stringent monetary and fiscal policy regime the co-ordinator of ISSER was confident that the government's inflation target of 13% for the year 2002 could be achieved.

Professor Asenso-Okyere said the Ghanaian economy in the year 2001 faced a multiplicity of formidable challenges, among them the inability of the Tema Oil Refinery to be self financing which affected the external debt stock of Ghana; the decline in cocoa output; the sluggishness of the industrial sector which managed a depressing growth rate of 2.9% as opposed to the projected rate of 4.0% for 2001; the non-availability of medium and long term credit for the private sector and the $21.0million shortfall in gold export revenue.

On a brighter note the ISSER co-ordinator said Ghana saved $190.0millon in the fiscal year 2001 because of the Highly Indebted Poor Country initiative which otherwise would have gone into external debt servicing; the agricultural sector posted an impressive growth rate of 4.0% in 2001 up from 2.1% in 2000 with rice production going up by 18% in 2001.

Prof. Asenso-Okyere concluded with the view that economy policy makers in Ghana ought to take a closer look at the dynamics of population growth and its possible impact on the Ghanaian economy in the future adding that the sharpening of Ghana's global competitiveness is key to the nation's economic prosperity.

"The State of the Ghanaian Economic Report" for 2001 is the twelfth published by ISSER. The chairman of the occasion was Mr. J.S. Addo one time governor of the Bank of Ghana and currently the chairman of Prudential Bank.