33% of Ghana’s working class do not believe 2023 GDP growth will surpass 1.6% growth rate forecast by IMF
A survey conducted by Deloitte Ghana has unveiled contrasting sentiments among Ghanaian workers regarding the nation’s Gross Domestic Product (GDP) growth projection for 2023.
Out of the respondents, 34% expressed optimism, anticipating that Ghana’s economic expansion would surpass the International Monetary Fund’s (IMF) forecast of 1.6% for the year.
However, an equally sizable 33% either disagreed or strongly disagreed with the notion of the country exceeding the IMF’s projection.
Disparate Projections: Government’s Ambitions and Fitch Solutions’ Optimism
As policymakers set forth their ambitions, the government envisages a GDP growth rate of 2.6% for 2023, slightly more bullish than the IMF’s outlook.
Notably, Fitch Solutions, a respected research firm, paints an even more promising picture, offering a projected GDP growth rate of 3.1% for Ghana in the same period.
These diverse projections underscore the intricacies involved in economic forecasting and the potential volatilities shaping the nation’s economic trajectory.
Sectoral Dynamics: Extractive, Services, and Agriculture as Pivotal Growth Engines
Within the tapestry of Ghana’s economic prospects, respondents from various industries identified the Extractive, Services, and Agriculture sectors as the principal drivers of growth in 2023.
Expectations are high for these sectors to chart the course of the country’s economic landscape and propel it towards progress.
Hurdles to Growth: Inflation and Currency Fluctuation Cast Shadows
Unveiling the chief impediments to growth, the survey highlighted the omnipresent challenges posed by inflation and currency fluctuation, resonating with 68% of respondents as the key hurdles their industries face.
Secondary concerns surfaced in the form of cost of capital and the potential global economic downturn, shedding light on multifaceted economic pressures.
Government’s Digitalization Efforts Garner Mix of Applause and Recommendations
The survey also delved into the efficacy of the government’s Technology and Digitalization Drive for businesses. A substantial 73% of respondents commended the initiatives, recognizing their constructive impact on enterprises.
However, another 68% emphasized the significance of enhanced consultation and collaboration with the government in formulating and executing digital strategies. The call for a more inclusive approach aims to optimize the benefits of the digitalization agenda.
Survey Scope and Demographics: Broad Industry Representation
The comprehensive survey, encompassing 16 questions, was conducted online and elicited 239 responses from diverse sectors, categorized based on Deloitte’s industry classification. A majority of respondents (65%) occupied low to middle-level managerial positions, including supervisors, executives, operations managers, and branch managers.
The Financial Services Industry emerged as the most prolific contributor, potentially underlining the sector’s vested interest in communicating economic expectations, particularly in light of the Domestic Debt Exchange Programme’s (DDEP) impact on the industry’s dynamics and the IMF program’s approval process.
