Ghana’s economy is expected to grow by 6.8% in 2018, representing an increase of 0.5 percent as compared to 2017 which was pegged at 6.3 percent.
Finance Minister, Ken Ofori-Atta, who revealed this whilst presenting the 2018 Budget and Financial Statement in parliament today, Wednesday, November 15, 2017, stated that government targets an overall Gross Domestic Product (GDP) growth rate of 6.8 percent, with non-oil GDP growth rate of 5.4 percent.
“Our prime focus is to ensure that the fiscal deficit, which remains our principal fiscal anchor, continues on a downward trajectory, reaching 4.5 percent of GDP from the projected 2017 end-year estimate of 6.3 percent.”
Ghana’s annual consumer price inflation fell to 11.6% in October from 12.2% the previous month, but government is targeting an end-of-year inflation rate of 8.0 percent, lower than the 11.2 percent targeted for 2017, according to Mr Ofori-Atta.
Mr. Ofori-Atta is also hopeful the fiscal deficit of the country may stabilize below 5% of GDP, as government puts in all the macroeconomic measures to grow the economy through innovative channels that will not place undue burden on the entire populace.
“Achieving this objective is not only critical, but necessary if we are to maintain the healthy primary balance surplus required to eventually reduce the rate of debt accumulation,” he added.
“We must make these decisions in good time to ensure that our future generations will be bequeathed with a priceless inheritance of sustainable fiscal environment.”
“In this vein, optimizing resources mobilization through improved tax compliance and efficient and effective revenue administration, remains an important part of our fiscal strategy to boost domestic revenue mobilization for 2018 and the medium-term,” he added.