Browsing: Ghana’s economy

• Despite Ghana’s economic woes, Fitch Solutions maintains a 2.9 per cent GDP growth for 2023. The IMF and the World Bank project growth rates below 2.0 per cent.
• The IMF estimates that public debt will remain at 87.8 per cent of GDP in 2023 and 89.2 per cent of GDP in 2024
• Ghana can enhance downstream value-added activities, stabilise petroleum prices, create jobs in the refining industry.

Ghana, previously known as one of Africa’s fastest-growing economies, has encountered obstacles to its growth trajectory due to the economic downturn caused by falling oil prices and the Covid-19 pandemic. This trend has continued to evolve, with economic growth slowing down to 3.6 per cent of GDP in 2022 amidst the global economic shock resulting from the Russia-Ukraine war.

The International Monetary Fund (IMF) estimates that GDP growth is expected to further decrease to 2.8 percent in 2023 before rebounding to 3.9 percent …

• The Ghanaian parliament has approved a proposal by the government to borrow up to US$750 million from Afreximbank
• A seven-year portion of the loan is broken up into two parts: one for US$102.19 million with an interest rate of 6.49 per cent overall, including fees, and another for 101 million dollars with a rate of 9.55 per cent overall
• In June, Finance Minister Ken Ofori-Atta requested parliament to accelerate the authorisation of the loans

The Ghanaian parliament has authorised a proposal by the government to borrow up to US$750 million from the African Export-Import Bank for the 2022 budget.

In June, Finance Minister Ken Ofori-Atta requested parliament to accelerate the authorisation of the loans.

However, differences have held up the process even though the country faces skyrocketing inflation, lacklustre economic growth and a tumbling local currency.

The vote by the deadlocked parliament eliminates a significant obstacle for the government of …

Ghana’s public debt rose to $45.4 billion due to the impact of COVID-19 according to the Central Bank of Ghana.

The bank said that for the first seven months of 2020, provisional data on budget execution, showed an overall budget deficit of 7.4 per cent of GDP, against the revised the target of 7.2 per cent of GDP as the pandemic continued to impact fiscal operations.

In a press release the bank said that the primary balance also recorded a deficit of 3.7 per cent of GDP, above the planned target of 3.4 per cent of GDP.

“Over the review period, total revenue and grants amounted to GH¢27.7 billion ($4.8 billion) compared with the target of GH¢26.8 billion ($4.6 billion). Total expenditures and arrears clearance amounted to GH¢56.2 billion (9.7 billion), above the target of GH¢53.3 billion ($9.2 billion). These developments impacted the stock of public debt which rose to …