Economy rebounds thanks to fiscal discipline – Finance Ministry

Business News of Saturday, 23 December 2017

Source: Finance Ministry

2017-12-23

Finance Minister, Ken Ofori Atta

Not all of the economic developments in 2017 have been obvious, but through a series of policy changes, the government has methodically stabilized the economy and set the conditions for accelerated growth and job creation in 2018 and beyond.

Debt management, confidence in the economy, reliable electricity supply and growth have trended in the right direction.

With renewed fiscal discipline, Ghana achieved a deficit of 6.3 percent, down from a high of 11.6 percent in 2012. Inflation has also come down, from 15.8 percent in October 2016 to 11.6 percent in the same period this year.

The government has restructured its external debt to lean more heavily on longer-term bonds, easing the burden of interest payments and freeing up funds for social development projects. Overall debt as a percentage of GDP has come down to 70.9 percent compared to 73.1 percent for 2016.

Most importantly, the economy is growing again. Overall real GDP grew by 7.8 percent as of June 2017, compared to 2.7 percent in the same period for 2016, and is estimated to grow by 7.9 percent by the end of 2017.

Thanks in large part to recovery in the oil sector, as well as services, economic growth means more money reinvesting in Ghana, improved domestic revenue collection, and more jobs for the people of Ghana.

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