An Economist Professor says the economy is yet to fully recover from the havoc caused by the COvid-19 pandemic despite the 5.4 per cent growth recorded last year.According to William Baah-Boateng, some areas still need to be worked on to help build the necessary shock absorbers.He said this when he appeared on PM Express Business Edition to discuss “Labour Agitations and the economy.”Professor Baah-Boateng argued that despite the strong growth numbers, Ghana’s exposure to Russia’s invasion of Ukraine could hit the gains made so far in the country’s recovery.
According to him, we should look at full recovery in the next two years.Ghana’s Economic growth and Recovery2021 GDP estimates showed that the economy grew by 5.4 per cent and 5.9 per cent for Non-Oil Growth.
This was fueled by the strong growth of the Information and Communication, Water and Sewage, and Hotel and restaurants.On Quarter performance, the economy grew strongly every three months of last year.But Prof Baah-Boateng noted that the economy is still recovering and has not fully recovered yet.
“The recovery can be described as 60 percent, adding that there is still some more work to be complete,” he added.Revenue and the EconomyProfessor Baah-Boateng also maintained that a lot more needs to be done by the government to help improve the situation.
Government, thus, is hoping to realise some ¢100.5 billion as revenue by end of this year.But argued that the Ghana Revenue Authority may also have to review its approach to tax collections to help achieve the said target. He added that “it’s unfortunate that everything has been about the E-Levy.”
E-LevyProfessor Baah-Boateng noted that he has a challenge with he approach adopted by the government when it comes to the tax on Electronic transfers (E-Levy).He maintained that government should have rather looked at placing the tax on the charges placed by the Telecos on mobile money transfers, that “it would have taken the burden a lot of individuals.
“If MTN for instance is making ₵1 billion on the charges then, that 1 percent should have been placed on that rather.”But Professor Baah- Boateng was also worried about how this could affect the digitalisation agenda of the government.
