Economy Showing Positive Signs of Recovery to Pre-COVID-19 Levels, Seth Terkper Says
Former Finance Minister Seth Terkper has acknowledged positive signs of progress in Ghana’s economic recovery, citing recent reports from the International Monetary Fund (IMF) as evidence.
His remarks come on the heels of outgoing President Nana Akufo-Addo’s statement during the inauguration of the transition team on Wednesday, December 11, where he expressed optimism about the economy returning to pre-COVID-19 levels.
President Akufo-Addo noted that the economy’s rebound was a significant milestone, reflecting resilience despite recent challenges.
However, Mr. Terkper, speaking in an interview on Thursday, tempered the optimism with caution, noting that while headline figures indicate growth, the broader economic picture reveals disparities across sectors.
“There are positive signals, and even the IMF has stated that there are positive signals,” Mr. Terkper said. “But the growth we are talking about is a headline figure, which is the average growth,” he clarified, highlighting that these indicators do not necessarily capture the performance of all sectors.
Diverging Views on Economic Recovery
President-elect John Mahama also speaking during the inauguration of the transition team on Wednesday, December 11, offered a different perspective, disputing President Akufo-Addo’s claim that the economy is on a firm recovery path.
According to Mr. Terkper, Mr. Mahama’s concerns are valid, as the recovery appears uneven.
“So the caution President Mahama was pointing to is that the headline may be driven by oil, or it may reflect industries picking up, but if you look at the release [IMF’s report], they say some sectors are suffering,” Mr. Terkper explained.
He further noted that while indicators like GDP growth might signal recovery, vulnerabilities remain in critical areas such as agriculture and export-import trade, asserting these challenges could persist into the first quarter of 2025 and hence require targeted interventions to ensure inclusive growth.
Sectoral Challenges
Despite the positive outlook, Mr. Terkper underscored the need for caution. “The current president may focus on the headline figure, but that is only one index to boldly state that the economy is back on the path to recovery,” he stated.
He emphasized that structural weaknesses in key sectors, such as agriculture, remain a concern and could dampen the broader economic recovery if left unaddressed.
