Finance Minister Ken Ofori-Atta has indicated that Government’s efforts to restore the economy to a stable situation is on course.
Presenting the Mid-year Budget Review to Parliament on Monday, July 31, the Finance Minister indicated that “the economy is showing signs of recovery.”
“As I have indicated, we have made significant progress on restoring macroeconomic
stability and the narrative is changing,” he added.
According to him, the exchange rate has stabilised, inflation has softened, and interest rates have
declined since December, 2022.
This follows government’s agreement with the International Monetary Fund (IMF) for a $3 billion Extended Credit Facility.
However, government failed to meet a number of its targets for 2022.
i. Overall Real GDP growth was 3.1 percent compared to the revised target of 3.7
percent;
ii. Non-Oil Real GDP growth was 3.8 percent compared to the revised target of
4.3 percent;
iii. End-December inflation rate was 54.1 percent compared to the projected 28.5
percent.
iv. Total Revenue and Grants for the period amounted to GH¢96.7 billion (15.8 %
of GDP) compared with the revised target of GH¢96.84 billion (16.4 percent of
GDP).
v. Total Expenditure on commitment basis amounted to GH¢165.1 billion (27.0%
of GDP) against the revised target of GH¢133.8 billion (22.6% of GDP).
vi. Overall Budget deficit on commitment basis was 11.8 percent of GDP against
the revised target of a deficit of 6.3 percent of GDP.
vii. Primary Balance on commitment basis was a deficit of 4.3 percent of GDP
against a revised target of a deficit of 0.7 percent of GDP.
viii. On cash basis, the Overall Budget deficit was 10.7 percent of GDP against the
revised target of a deficit of 6.6 percent of GDP.
ix. The corresponding Primary Balance on cash basis was a deficit of 3.2 percent
of GDP against a revised target of a surplus of 0.4 percent of GDP; and,
x. Gross International Reserves was equivalent to 2.7 months of import cover.
Source: Andy Ogbarmey Tettey