The National Development Planning Commission (NDPC) has said that it aims to use its newly launched Ghana Macroeconomic Model (GMM) as a tool to help the county assess economic scenarios and make smart policy choices.
Developed by Oxford Economics with the active involvement of Ghanaian institutions, the GMM is an online analytical tool designed to describe problems and opportunities of the country’s economy by using micro and macroeconomic indices. The GMM platform synchronizes all economic data and aid in scientific economic projections that can accelerate a country’s development with deliberate policies.
It aims to avoid the scattering of economic data across agencies, where is some cases the outcomes of similar economic research vary from agency to agency. The NDPC’s GMM is expected to present a report on the state of the economy and projections annually.
The Commission collaborated with partner institutions, namely, Bank of Ghana (BoG), Ministry of Finance (MoF), University of Cape Coast (UCC), Ghana Statistical Service (GSS) and Ghana Atomic Energy Commission (GAEC), to develop a model that satisfied the diverse interests of these institutions while also reflecting the unique characteristics of the Ghanaian economy.
Speaking at a launch of the GMM, the Director-General of the NDPC, Dr. Kodjo Esseim Mensah-Abrampa said: “The GMM could not have come in at a better time. More than ever, nations and multilateral agencies are increasingly using models to forecast the economic out-turns of their policies, projecting scenarios that better inform their policy choices and judicious use of scarce resources.
Today, with the help of this model, we can provide and correct some of the wrong impressions about our economy created due to lack of information, and better reflect our economy, considering the nuances of our society.”
He added that: “The COIVD-19 pandemic has presented a new challenge in our quest to achieve the Sustainable Development Goals (SDGs); African Union Agenda 2063, the operationalization of the African Continental Free Trade Agreement; and the ECOWAS protocols.
COVID-19 has, among other things, exposed the deficiencies in our health and education system, highlighted the widening inequalities, and inadequacy of our social protection system. On the other hand, the pandemic has also brought to the fore, opportunities in e-business, pharmaceutical and textile industries.
To build-back-better from the COVID-19 pandemic and get back on our development trajectory, we need to come up with smart solution backed by evidence. The Ghana Macroeconomic Model is a tool that is aimed at helping the county assess economic scenarios and make smart policy choices with the support and collaboration of all stakeholders.”
He was however quick to add that the Commission is by no means saying it has found the magic wand to solve the challenges of the economy with the development of this model.
“There is never a perfect model, likewise the GMM. This model will have to be continually fine-tuned as it is used. For now, the main aim of the Commission is to encourage the use the Ghana Macroeconomic Model, to inform economic policies at all levels, especially, at the Economic Management Team meetings, National budget preparations, and BoG’s Monetary Policy deliberations,” he said.
Dr. Kodjo Esseim Mensah-Abrampa, Director General NDPC