The Majority Poor Getting Poorer In Ghana

An ISSER report on the state of the Ghanaian economy for 2006 has revealed that whilst poverty levels reduced generally, the gap between the rich and the poor has rather deepened.The report also showed that whilst budgetary allocation to local governments was not enough, the disbursed fund out of the allocation was less than one percent.Presenting the report in Accra, the Director of ISSER (Institute of Statistical, Social and Economic Research) Professor Ernest Aryeetey said the economy in 2006 grew by 6.2% as against 5.7 in the previous year. The growth according him was recorded from only the manufacturing and industrial sectors of the economy.

The report which focused on a broad aggregate of the economy’s performance stated that Ghana remains a small economy whose policy direction is determined by external factors.Whilst acknowledging the importance of China’s emergence in the economy in the area of market for commodities, Professor Aryeetey says it also presents risks and called for a clear-cut policy on relations with external economies.The report painted a gloomy picture of the period under review as the largest ever deficit was recorded in 2006.

The record 40% deficit was attributed to a rapid rise in public expenditure as a result of labour agitation for higher pay.Professor Aryeetey observed that the stable 10.5% inflation and about 24% interest rate levels have made the country an investment destination, adding that the private sector does not worry as the economy remains unpredictable.

The Vice Chancellor of the University of Ghana, Professor Nii Boi Tagoe who chaired the function said there is no doubt that the energy crisis has had some effects on the business community.Professor Tagoe said the report as presented by ISSER brings to light the need for policy changes.
Source:dailyExpress