Dr Yamson questions World Bank’s ‘rosy’ projection of Ghana’s economic revival by 2025
Renowned economist Dr. Ishmael Yamson, in a recent appearance on the PM Express Business Edition, delivered a somber outlook for Ghana’s economy, casting doubt on the World Bank’s optimistic prediction of a full recovery by 2025.
Highlighting a lack of preparedness by the government to implement critical structural reforms prescribed by the International Monetary Fund (IMF), Dr. Yamson voiced concerns over the nation’s financial discipline and reluctance to rationalize expenditure.
The World Bank’s report, titled “Price Surge: Unraveling Inflation’s Toll on Poverty and Food Security,” projected Ghana’s economic growth to stall at a meager 1.5% in 2023 and sluggishly reach 2.8% in 2024. However, Dr. Yamson questioned the veracity of this forecast, suggesting that unless significant reforms are set in motion, the nation’s full economic potential might remain elusive.
While the World Bank’s report emphasizes the importance of structural reforms to address the root causes of the crisis and bolster economic resilience, Dr. Yamson contended that the government’s lukewarm response could hinder any progress. Notably, the economist highlighted the need for sustainable domestic revenue generation, particularly by streamlining tax incentive regimes and enhancing revenue administration.
In an incisive analysis, Dr. Yamson refuted claims that Ghana’s current economic challenges can be solely attributed to external factors such as the COVID-19 pandemic and geopolitical conflicts. Instead, he pointed to long-standing issues with the country’s debt management and urged the government to adopt more prudent fiscal measures.
The economist expressed concern about the impact of political cycles on Ghana’s economy, cautioning against unchecked expenditure during election years. Drawing attention to data from the IMF and the World Bank, which demonstrate a historical pattern of economic strain post-elections, Dr. Yamson underscored the urgency of exercising stringent expenditure control.
Dr. Ishmael Yamson’s candid assessment paints a challenging picture for Ghana’s economic recovery prospects. As the nation faces a critical juncture, the need for decisive action, prudent fiscal policies, and the implementation of tough structural reforms cannot be understated. Without a concerted effort to address these issues, Ghana’s economic revival may well remain an elusive aspiration.
