Browsing: Ghana economy

The Bank of Ghana’s data indicates, it secured GH¢470.4 million for the debt instrument, about 76% less than the targeted amount.

The domestic debt is a component of the total debt stock which stood at GH¢391.9 billion (equivalent of US$ 55.1 billion) as of March 2022, data from the Bank of Ghana indicate.

The Monetary Policy Committee (MPC) during its press conference indicated that, it observed that execution of the budget for the first quarter was broadly in line with targets although there was a minor deviation in the deficit target, stemming largely from low revenue receipts.

The improvement in export earnings was attributed to crude oil and non-traditional exports. Crude oil export receipts recorded significant growth of 61.0 per cent to US$1.9 billion, due to price effects, while gold exports improved by 3.6 per cent, also supported by price effects.

According to Finance Minister, although the economy is in difficulties now, he believes the it is heading in the right direction, and therefore government will find alternative ways of refinancing the country’s debt.

Year on year inflation is expected to worsen further in the coming months in the wake of the decision by the Public Utility Regulation Commission to hike tariffs of electricity and water as well as increase in transport fares by the transport operators in the country.

Although the expected growth of 5.2% is the lowest among other economic researchers, the World Bank has projected a growth of 5.5% for 2022. Also, the parent company of Stanbic Bank, Standard Bank has predicted an economic growth rate of about 6.2% in 2022 and 6.8% in 2023 amidst tough times for the Ghanaian economy.

In its latest World Economic Outlook report, the Fund said the Ghanaian economy will expand by 5.1% in 2023, 0.1% lower than the 2022 forecast, whilst it return to the pre-pandemic levels of 7.5% in 2027.

IMF’s April 2022 Fiscal Monitor also revised its forecast of an end year inflation of 16.3% from an initial forecast of 8.8%. This means the country will miss the Bank of Ghana target of 8%+\-2. It indicated that, the rising inflation has been triggered by higher commodity prices such as crude oil and cereals as a result of the Russia/Ukraine conflict.

Looking into Ghana’s fiscal position following increased spending on health and household support due to COVID-19 pandemic, Ghana’s fiscal deficit would widen to an estimated 11.3% in 2021. This is well above historical level