The National Developing Planning Commission (NDPC) has launched a macro-economic model to determine Ghana’s growth strategy.
The model, which has been named Ghana Macro-economic Model (GMM), seeks to set the country’s growth target, policy directives and the means to achieve them.
Besides, the model wILL also be used to transform all parts of the economy such as agriculture, industry and the services sector and their compatibilities.
At the launch in Accra yesterday, the Director-General of NDPC, Dr Kodjo Mensah-Abrampa, said the model would help the country to collect the right information of the economy to right the wrong associated with policy directives due to lack of information.
He said the model would be used to forecast the economic out-turns of the policies of the government to inform their [policies] reform and also promote the judicious use of the nation’s scarce resources.
He added that it could also be used to assess the economic impacts of eventualities such as COVID-19 to inform measures if adopted would put the economy back on track.
Dr Mensah-Abrampa said the NDPC desired to encourage the government to use the model to inform all economic policies of the Economic Management Team, national budget preparations and the monetary policy of the Central Bank.
On his part, a Senior Planning Analyst of NDPC, Mr Farouk Anderson, said the model would help promote inclusive and equitable growth and social progress in the nation.
He said the model could be used to identify policies that are needed to attain macroeconomics stability, which would make the economy resilient, adding that it would also minimise policy mismatch and address the root causes of economic problems instead of symptoms.
On the limitations of the model, he said it cannot capture data on artificial intelligence (technology), spatial and environmental issues such as carbon dioxide emissions and climate change.
The Model was developed by the NDPC in collaboration with the Bank of Ghana (BoG), Ministry of Finance (MoF), University of Cape Coast (UCC), Ghana Statistical Service (GSS), Ghana Atomic Energy Commission (GAEC) and the Oxford Economics.
The GMM is an eclectic auto-correction model and it has been built to give a good description of the historic relationship between economic variables and to capture the key linkages between those variables and sectoral linkage in Ghana.
Ishmael Batoma, ISD