Economy experience high but unbalanced growth from mid-2000 to 2022 debt crisis – Former 1st Deputy Governor

According to former First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari, Ghana's economy experienced high but unbalanced growth from the mid-2000s to the 2022 debt crisis. The growth was driven by cocoa exports, gold production, and later oil production, averaging 6% annually. However, this expansion was accompanied by rising fiscal deficits and increasing dependence on external borrowing, setting the stage for future vulnerabilities.

The macroeconomic trajectory began to show strain by the early 2010s, with election-driven spending booms followed by deep fiscal and debt crises. The growth performance hid major vulnerabilities, as it was obtained at the price of high and growing fiscal deficits, and was not diversified nor based on private investment or high-quality public infrastructure.

Brief written by urgent.news from Joy Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.