Ghana to sustain LMIC status despite recent economic challenges – Pierre Laporte
World Bank Country Director for Ghana, Liberia and Sierra Leone, has expressed optimism that Ghana, despite the recent economic challenges will sustain its lower middle-income status and even grow into becoming a full-fledged middle income country.
According to him, the World Bank is committed to helping Ghana grow its economy to achieve a middle-income status.
“Despite the recent challenges, I am convinced that Ghana can sustain its lower middle-income country status to become a fully-fledged middle-income country and the World Bank reiterates its continuous support to helping that process,” he averred speaking at the re-launch of the Ghana Chapter of the World Bank/IMF Global Parliamentary Network.
A country is classified as low-income, lower middle-income, upper middle-income or high-income country based on its GNI per capita.
Countries with less than $1,035 GNI per capita are classified as low-income countries, those with GNI per capita between $1,036 and $4,085 are classified as lower middle income countries.
Countries with GNI per capita between $4,086 and $12,615 are classified as upper middle-income, and those with GNI per capita income above $12,615 are classified as high-income countries.
With a GNI per capita of over $2,300, Ghana is classified as a lower middle-income country. Hence, to grow into a fully fledged middle-income country (upper middle-income country) Ghana would have to grow its GNI per capita to between $4,086 and $12,615.
Ghana’s ability to however grow into an upper middle-income country, has been and is still severely being hindered by the country’s numerous economic challenges.
In recent times (Covid pandemic and Russia-Ukraine war), the country has recorded high fiscal deficits, increased debt levels resulting in debt vulnerabilities, interrupted GDP growth, energy sector fiscal risks, significant cedi depreciation, among others.
At the moment, Ghana is looking to secure a $3bn Balance of Payment support programme from the IMF to urgently address its economic challenges.
