Govt lowers 2023 GDP growth target to 1.5%

The government has adjusted its overall real GPD growth rate from 2.85% to 1.5% for 2023 after missing targets in the 2023 half year and 2022.

The government also reduced its targets for Non-Oil GPD from 3.00% to 1.5% and inflation from 18.9% to 31.3%.

Presenting the 2023 review of the budget statement and economic policy in parliament on Monday, Finance Minister Ken Ofori Atta stated that although the government was able to make progress in stabilizing the economy, the need to align fiscal measures with the IMF program will significantly impair growth for the year.

“We have made significant progress on restoring macroeconomic stability, and the narrative is changing. The economy is showing signs of recovery. The exchange rate has stabilized, inflation has softened, and interest rates have declined since December 2022.”

“The overall Real GDP growth for 2023 has been revised to 1.5 percent from 2.8 percent, and non-oil Real GDP growth has also been revised to 1.5 percent from 3.0 percent. The downward revision in projected growth for 2023 is an indication of a broad slowdown in the three sectors of the economy as a result of factors such as the fiscal consolidation plan and difficult global conditions”, Mr. Ofori-Atta added.

He, however, projected a rebound in the economy after the implementation of key measures in the Post-Covid Programme for Economic Growth, including growth in the private sector.

“Overall GDP Growth is, however, projected to rebound to 2.8 percent, 4.7 percent, and 4.9 percent in 2024, 2025, and 2026, respectively. This is a result of the implementation of growth-oriented and structural transformation strategies in the PC-PEG. We have, however, been charged in the PC-PEG to develop an enhanced Growth Strategy supported by the crowding in of private domestic and foreign investments to further boost growth. We are confident of a private sector outlook to boost growth and jobs.”

A World Bank report earlier this month predicted a slow year for Ghana, estimating a growth rate of 1.5% in 2023 and remaining sluggish in 2024 at 2.8%, but recovering by 2025.