{"id":219859,"date":"2024-09-23T04:45:54","date_gmt":"2024-09-23T04:45:54","guid":{"rendered":"https:\/\/www.ghanamma.com\/2024\/09\/23\/ghanas-6-9-q2-growth-rate-proves-bawumias-economic-prowess-dr-bannor\/"},"modified":"2024-09-23T04:45:54","modified_gmt":"2024-09-23T04:45:54","slug":"ghanas-6-9-q2-growth-rate-proves-bawumias-economic-prowess-dr-bannor","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2024\/09\/23\/ghanas-6-9-q2-growth-rate-proves-bawumias-economic-prowess-dr-bannor\/","title":{"rendered":"Ghana\u2019s 6.9% Q2 growth rate proves Bawumia\u2019s economic prowess \u2013 Dr Bannor"},"content":{"rendered":"

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Dr. Frank Bannor, a Development Economist and Head of Research at the Danquah Institute has commended Vice President Dr. Mahamudu Bawumia for his exceptional economic leadership, following Ghana\u2019s impressive 6.9% economic growth in the second quarter of 2024 \u2013 the fastest rate in five years. <\/strong><\/p>\n

Speaking during an interview, Dr. Bannor said this remarkable achievement highlights Dr. Bawumia\u2019s \u2018unmatched\u2019 expertise in economic management.<\/p>\n

\u201cWhen it comes to economic management, no one can surpass Dr. Bawumia. His leadership has been transformative, and this growth rate is evidence of his visionary policies. His ability to navigate and manage the economy even during challenging times shows why he is an economic prophet,\u201d Dr. Bannor stated.<\/p>\n

Surpassing G-T economies<\/strong><\/p>\n

The Economist noted that the country\u2019s performance stands out, particularly when compared to some of the largest economies both in Africa and globally.<\/p>\n

He mentioned that South Africa, often recognized as one of Africa\u2019s leading economies, posted a modest 0.4% growth rate during the same period. Similarly, he cited global economic heavyweights such as the United States, Germany, and South Korea saw either slow growth or economic contractions.<\/p>\n

\u201cThe U.S. had a growth rate of around 0.4%, while Germany and South Korea faced contractions of -0.1% and -0.2% respectively in the second quarter of 2024. Yet here we are, with Ghana surging ahead with 6.9%. This proves that Dr. Bawumia is doing something right,\u201d he indicated. Dr. Bannor, who is also a lecturer at GIMPA Business School, pointed out that this level of economic performance was a testament to the strength and foresight of Ghana\u2019s economic policies, which had been focused on leveraging the country\u2019s key sectors for sustained growth.<\/p>\n

\u201cLook at the global stage\u2026These are major economies\u2014countries that can\u2019t be underestimated\u2014yet none of them recorded growth above 2% in the second quarter of 2024. Ghana, on the other hand, is growing at a rate we haven\u2019t seen in five years,\u201d he added.<\/p>\n

Drivers of the economic growth<\/strong><\/p>\n

Using data from the Ghana Statistical Service (GSS), Dr. Bannor outlined the critical factors behind Ghana\u2019s economic performance. \u201cGhana\u2019s industry sector recorded a robust 9.3% expansion, primarily driven by mining and quarrying activities,\u201d he explained. The mining sector, particularly gold, has been a cornerstone of Ghana\u2019s economy.<\/p>\n

According to Dr. Bannor, the gold sector experienced its third consecutive period of growth, expanding by 23.6% during the quarter.<\/p>\n

He further noted that the first quarter of 2024 saw a growth rate of 6.8%, highlighting the sector\u2019s consistent performance. Dr. Bannor emphasised the importance of the industry sector in job creation, stating that it absorbs approximately 18.86% of the Ghanaian workforce.<\/p>\n

\u201cNearly 19% of Ghana\u2019s employment is tied to the industry sector. So, when the sector is growing, it means that skilled laborers are finding jobs, which in turn helps expand the economy even further,\u201d he noted.<\/p>\n

Ban on mining?<\/strong><\/p>\n

\u00a0<\/p>\n

However, Dr. Bannor also cautioned against calls to ban mining in Ghana, stressing that those advocating such a move do not fully understand the country\u2019s economic structure. \u201cDr. Bawumia recognizes the significance of small-scale mining, which is the backbone of the economy.<\/p>\n

That\u2019s why he plans to establish a Minerals Development Bank, should he be elected president in December,\u201d Dr. Bannor said. He explained that this bank would provide crucial financial support for mining projects across the country, ensuring the sector continues to contribute to Ghana\u2019s economic growth.<\/p>\n

\u201cDr. Bawumia\u2019s vision also includes addressing the issue of foreign mining corporations repatriating all of their earnings,\u201d Dr. Bannor added. He indicated the potential of Bawumia\u2019s Gold Purchasing Programme, which aims to ensure responsible mining while helping to solve Ghana\u2019s perennial exchange rate challenges. Additionally, Dr. Bannor pointed out the services sector as another major contributor to the country\u2019s growth.<\/p>\n

The sector saw a notable expansion of 5.8% in the second quarter, compared to 3.2% in the first quarter. \u201cThe services sector encompasses communication, online business, wholesale and retail, restaurants and hotels, banking, finance, insurance, real estate, and more. It is the largest employer in Ghana, generating about 41.39% of total employment,\u201d Dr. Bannor mentioned.<\/p>\n

Agric sector<\/strong><\/p>\n

He mentioned that the agriculture sector also showed positive growth, rising by 5.4% in the second quarter, up from 4.7% in the first quarter. However, Dr. Bannor highlighted a significant challenge within this sector\u2014the ongoing contraction of the cocoa industry. \u201cThe cocoa sector, a critical component of Ghana\u2019s agricultural exports and a global leader in cocoa production, has now contracted for the fourth consecutive quarter, shrinking by 26.2%,\u201d he said.<\/p>\n

This decline has been attributed to several factors, including the impacts of climate change, adverse weather conditions, and disease outbreaks affecting cocoa plants. Despite the challenges facing the cocoa sector, Dr. Bannor lauded the success of the government\u2019s Planting for Food and Jobs (PFJ) programme.<\/p>\n

\u201cWhile cocoa production is dwindling, other PFJ crops such as cashew and rice are driving the agriculture sector\u2019s growth. PFJ is a resounding success and continues to yield positive results,\u201d he stated. Dr. Bannor further expressed confidence in Ghana\u2019s economic trajectory, forecasting a stable 5% general economic growth rate by the end of the year.<\/p>\n

\u201cIf we continue on this path, we will surpass the economic predictions made by the IMF, World Bank, and Bloomberg. Ghana\u2019s economy is poised for sustained growth,\u201d he said on Movement TV.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Dr. Frank Bannor, a Development Economist and Head of Research at the Danquah Institute has commended Vice President Dr. Mahamudu Bawumia for his exceptional economic leadership, following Ghana\u2019s impressive 6.9% economic growth in the second quarter of 2024 \u2013 the fastest rate in five years. Speaking during an interview, Dr. Bannor said this remarkable achievement […]<\/p>\n","protected":false},"author":1,"featured_media":219860,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-219859","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"\nGhana\u2019s 6.9% Q2 growth rate proves Bawumia\u2019s economic prowess \u2013 Dr Bannor - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2024\/09\/23\/ghanas-6-9-q2-growth-rate-proves-bawumias-economic-prowess-dr-bannor\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ghana\u2019s 6.9% Q2 growth rate proves Bawumia\u2019s economic prowess \u2013 Dr Bannor - Ghanamma.com\" \/>\n<meta property=\"og:description\" content=\"Dr. Frank Bannor, a Development Economist and Head of Research at the Danquah Institute has commended Vice President Dr. Mahamudu Bawumia for his exceptional economic leadership, following Ghana\u2019s impressive 6.9% economic growth in the second quarter of 2024 \u2013 the fastest rate in five years. 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