The National Development Planning Commission (NDPC) in collaboration with Oxford Economics, UK developed a Ghana Microeconomic model, an economic policy document for decision making.
The model serves as a blueprint to assist the country in economic forecasting, policy analysis and choices.
The model was developed through an inclusive process with inputs from the Bank of Ghana, the Ghana Statistical Service, the Economics Department of the University of Cape Coast, the Office of the Vice-President, among others.
Iaunching the model, Dr Kodjo Mensah-Abrampah, Director General of NDPC, said it was a tool that would the country assess economic scenarios and make smart policy choices with the support and collaboration of all stakeholders.
He said the Commission identified the need for a macroeconomic model, which should be national in scope and character, to enhance its planning and coordination functions, saying, “with this model, we can rectify some of the wrong impressions on our economy created due to lack of information”.
“The Commission is by no means saying we have found the magic tool to our development challenges with the development of this model or we are out of the woods.
“That notwithstanding, it will be of great importance in supporting our quest for evidence-based decision making. Indeed, it is only a start on a new journey; the breaking of a new dawn for us,” he said.
Dr Mensah-Abrampah said, though, COVID-19 had exposed the “deficiencies in our health and education system, and the inadequacy of our social protection systems, it has brought opportunities in e-business, pharmaceutical and textile industries.”
Dr Philip Abradu-Otoo, Director of Research, Bank of Ghana (BoG) said the model would help the bank in its economic policy decisions and analysis.
He said, the BoG were using suits of models in their economic growth analysis, saying, this was a well-coordinated economic model which they would adopt in their research and policy planning.
“We are excited about this model. For us in BoG forecasting inflation is crucial to our work and this will be handy in undertaking this exercise,” he said.
Professor Ferdinand Ahiakpor, Vice-Dean of the School of Economics, University of Cape Coast, described the model as a multi-purpose tool with room for expansion because it integrated multi-modules.
Prof Ahiakpor, who was a key consultant in drafting the model, said the UCC would be a key partner of the NDC in adding up to the shortfalls of the model in the future to augment future economic projections and forecasting.