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Ghana’s share of the African economy has dropped from 4.54% to 2.35% – Report

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Bright Simons, Vice President of the think tank IMANI Centre for Policy and Education, has emphasized Ghana’s declining role in the African economy.

He highlighted that Ghana’s proportion in the African economy was around 4.54% in 1960, but had plummeted to 2.35% by 2023.

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“Something seems to have happened in 1960 – call it the “1960 cliff” – Ghana seemed to have lost some edge thereafter. Recovery in 90s not enough,” he opined.

According to him, Ghana’s longest & highest growth hike was from 2004 to 2013, when Eurobonds and oil were discovered during the same period, but, “once again, I think there is something we are missing.”

In response, economist Cadman Atta Mills stated that he does not see what so confusing about Ghana’s declining proportion of the African economy.

“First, Ghana’s growth rate diminished spectacularly in the 1970s. Also, even during 1960 – 1965 the most populous and biggest economies (Egypt, Nigeria, South Africa, etc.) grew faster. Thus, drop in Ghana’s share (1960 – 2023) is logical,” he explained.

Bright Simons replied saying, “The 1970s collapse is very well known. However, for the 60s, the conventional thinking usually is that the dip happened in 1964 & then recovered in 67. Only by comparative analysis can one make the claim that there was a secular decline in competitiveness from 1960 onwards.”

“Worst growth lull was between 1971 and 1984. Lowest troughs in that period: 1975 (worst ever) -12.43%, 1976 -3.53%; and 1981 to 1983 (when the avg GDP growth rates was roughly -5% per year). You might note that the 70s collapse occurred around the same time as the Arab oil shocks,” Mr. Simons added.

Checkout the post below:

https://x.com/BBSimons/status/1748798899899232713?s=20

 

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