{
  "title": "Ghana: Planting Economic Seeds for Future Prosperity",
  "publication": "IMF News, December 18, 2018",
  "sourceUrl": "https://www.imf.org/en/news/articles/2018/12/17/sp121718-ghana-planting-economic-seeds-for-future-prosperity",
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  "summary": "Global growth forecast: IMF cut its global growth forecast to 3.7 per cent for 2018 and 2019.",
  "authors": [
    "Christine Lagarde"
  ],
  "publishDate": "2018-12-18",
  "sections": [
    {
      "heading": "Economic environment and implications for Ghana",
      "content": "- Global growth forecast: IMF cut its global growth forecast to 3.7 per cent for 2018 and 2019.\n- Recent data from emerging markets and the euro area suggest momentum may have slowed more than expected.\n- External pressures facing developing economies:\n  - stronger U.S. dollar,\n  - tightening financial market conditions,\n  - increased trade tensions.\n- Trade and regional integration:\n  - African Continental Free Trade Area could boost intra-African trade by at least 50 per cent within 5 years.\n  - Expanding trade can boost growth, innovation, and create new jobs with higher wages.\n- Labor market challenge:\n  - Sub‑Saharan Africa would need to create an estimated 20 million jobs per year to enjoy a demographic dividend.\n- Climate and urbanization risks:\n  - Over the next decade, many emerging and developing economies will likely see further increases in urbanization, with new infrastructure worth trillions of dollars globally.\n  - Policy priority: avoid locking in carbon-intensive energy and transportation; build “greener” cities."
    },
    {
      "heading": "Planting economic seeds — progress and vulnerabilities",
      "content": "- Long-term progress over the past two decades:\n  - extreme poverty levels have declined by more than two thirds;\n  - life expectancy has increased by 10 percent;\n  - real per capita income has grown by more than 80 percent.\n- Recent policy results over the past two years:\n  - Inflation has come down to single digits.\n  - There is a primary fiscal surplus for the first time in more than a decade.\n  - Strong growth—of about 7 percent—is expected over the medium-term, partly due to higher oil and gas production.\n- Remaining vulnerabilities:\n  - high levels of public debt;\n  - fiscal risks related to the energy sector;\n  - vulnerabilities in the financial sector."
    },
    {
      "heading": "Planting seeds to cope with near-term vulnerabilities (policy priorities)",
      "content": "- Revenue and fiscal management:\n  - About 42 pesewas for every cedi collected by the government is used to service outstanding public debt.\n  - Steps recommended: broaden the tax base, reduce leakages, streamline tax exemptions to make them more targeted.\n  - Maintain fiscal discipline and avoid overspending, especially in election years.\n- Energy sector risk reduction:\n  - Strengthen finances of public energy companies through improved oversight and management.\n  - Reform utility tariffs.\n- Financial sector resilience:\n  - Closure and resolution of seven banks in 12 months to bolster financial stability.\n  - Focus on addressing remaining weaknesses, including in the non-bank sector.\n- IMF role:\n  - Working in partnership with Ghana through policy advice, financial support when needed, and hands-on training and capacity building."
    },
    {
      "heading": "Planting seeds to foster durable and inclusive growth (longer-term strategies)",
      "content": "- Achieving the Sustainable Development Goals requires public sector leadership and partnership with the private sector, domestic and foreign.\n- Fiscal policy guidance under heavy debt burdens:\n  - Reduce non-essential spending to cut debt, while maintaining or increasing essential social spending and investments in people.\n- Education and human capital:\n  - Ghana launched a free Senior High School program that saw a 36 percent jump in student enrollment over the past year.\n- Productivity and infrastructure:\n  - Lift productivity and reduce income inequality by scaling up infrastructure investment—e.g., upgrading road networks in farming regions, modernizing ports and power plants.\n  - Emphasis on high-quality projects with sound management and transparent financing for debt sustainability, ‘value for money,’ and good governance.\n- Gender and inclusion:\n  - Ghana has a relatively low gender gap in economic participation (the share of women working in Ghana in 2016 was only 4 percentage points below the share for men), but there is room to improve women’s access to university education and leadership positions in public office.\n- Innovation and private sector dynamism:\n  - Ghana hosts a robust network of academic institutions, innovative startups across sectors (fintech, fashion, social media), and cultural industries (film and music).\n- Anti-corruption and safeguarding public resources:\n  - Collective action is needed; initiatives include the Office of the Special Prosecutor, the Auditor General, and the Bank of Ghana.\n  - Global and regional costs cited:\n    - annual cost of bribery alone is over $1.5 trillion—roughly 2 percent of global GDP;\n    - Africa is estimated to be losing more than $50 billion a year through illicit financial outflows.\n  - Redirecting these funds could finance education, healthcare, and stronger institutions."
    },
    {
      "heading": "Conclusion and strategic message",
      "content": "- Ghana’s vision: “Ghana beyond aid” — transition toward a thriving emerging market economy that unlocks the full potential of all Ghanaians.\n- Policy agenda:\n  - Address near-term vulnerabilities (revenues, energy sector risks, financial stability).\n  - Foster durable, widely shared prosperity through investments in people, infrastructure, governance, and partnerships with the private sector.\n- Closing sentiment: work in partnership to plant economic seeds and grow a tree that will nourish future generations.\n\nSpeech by Christine Lagarde — Accra, December 18, 2018. International Monetary Fund.\n\n---\n\n\n References\n\n- Christine Lagarde\n- Ghana and the IMF\n- The IMF and Good Governance -- A Factsheet\n- Speeches\n- PRESS CENTER\n- Blog\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/12/17/sp121718-ghana-planting-economic-seeds-for-future-prosperity"
    }
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    "Authors: Christine Lagarde",
    "Published: December 18, 2018",
    "Global growth forecast: IMF cut its global growth forecast to 3.7 per cent for 2018 and 2019.",
    "Recent data from emerging markets and the euro area suggest momentum may have slowed more than expected.",
    "External pressures facing developing economies:",
    "Trade and regional integration:",
    "Labor market challenge:",
    "Climate and urbanization risks:",
    "Long-term progress over the past two decades:",
    "Recent policy results over the past two years:",
    "Remaining vulnerabilities:",
    "Revenue and fiscal management:",
    "Energy sector risk reduction:",
    "Financial sector resilience:",
    "IMF role:",
    "Achieving the Sustainable Development Goals requires public sector leadership and partnership with the private sector, domestic and foreign.",
    "Fiscal policy guidance under heavy debt burdens:",
    "Education and human capital:",
    "Productivity and infrastructure:",
    "Gender and inclusion:",
    "Innovation and private sector dynamism:",
    "Anti-corruption and safeguarding public resources:",
    "Ghana’s vision: “Ghana beyond aid” — transition toward a thriving emerging market economy that unlocks the full potential of all Ghanaians.",
    "Policy agenda:",
    "Closing sentiment: work in partnership to plant economic seeds and grow a tree that will nourish future generations.",
    "[Christine Lagarde](https://www.imf.org/en/About/senior-officials/Bios/christine-lagarde)",
    "[Ghana and the IMF](http://www.imf.org/external/country/GHA/index.htm)",
    "[The IMF and Good Governance -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/the-imf-and-good-governance)",
    "[Speeches](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Blog](https://www.imf.org/external/pubs/ft/fandd/2015/12/stern.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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