MAHAMA MADE GHANA THE FASTEST GROWING ECONOMY

Investment is a central factor in determining the Gross Domestic Product (GDP), which is the aggregate measure of country’s economic output.

Investment means expenditure on capital spending and it is a component of aggregate demand. Therefore, if there is increase in investment, it helps to boast aggregate demand and short run economic growth. Investing in skills and education can increase labour productivity. Investment in infrastructure can increase productivity and the productive capacity of the economy.

If investment leads to a significant increase in productivity then- it can automatically lead to an increase in the long run trend rate of economic growth.

It takes little analysis to see that infrastructure plays a major role in the economy of a country, whether developed or developing.

The need for good infrastructure management is of great importance to the economics of countries all over the world and the various sectors of the economy needs to be understood. The world is fast becoming a global village and a necessary tool for this process is communication of which telecommunication is a key element.

Ghana is part of this race for rapid development. The provision of infrastructure services to meet the demands of business, households and other users is one of the major challenges of Ghana’s economic growth. The Mahama administration focused on provision of economic infrastructure to expand the productive capacity of the economy by increasing the quantity and quality such infrastructure.

The transformation curve or the production possibility frontiers or curve shifted with the expansion of the economic infrastructural base, thereby accelerating the rate of economic development and enhancing the pace of socioeconomic development. Road infrastructure has been found to be significant factory of economic growth and development.

The Mahama administration constructed and rehabilitated roads across the country. The rehabilitation of our ports, building of new airports have a positive impact on the growth and development of the country. In 2016, the International Monetary Fund (IMF) projected that Ghana’s economy will grow 7.5% in 2017 as the Tweneboa, Enyenra and Ntomme (TEN) oil field begins full production. In 2015, Ghana signed an agreement to begin work on the ENI/Vitol sankofa field.

It was projected that after two years of sluggish growth from 2014 to 2016 without oil and compounded by low prices of its gold and cocoa on the international market. Real growth recovered to 8.5% in 2017 as projected by the IMF and some think tanks.

President Mahama made it clear that creating the conditions under which business can grow was his top priority. He introduced innovative measures to reduce borrowing which he said crowds out the private sector and raises interest rates. When countries was facing economic headwinds, Ghana’s economy showed resilience because of the structural reforms his administration took.

The IMF reported that Ghana’s economy, which will run a surplus in 2016, was strengthening due to Mahama’s economic and stability of the cedi.

The ISSER presenting the 2019 mid-year review of the economy revealed that it is likely the country may miss the projected growth for 2019. The world bank and other institutions have stated same attributing the downward trend to the government’s flagship programs.