The Minister for Finance, Ken Ofori-Atta, says the government expects growth to rebound strongly in 2021 to 5.7%. He said this will be the result of the implementation of the transformation and revitalisation phase of the Ghana CARES (Obaatanpa) programme.
Presenting the 2021 Expenditure in Advance of Appropriation in Parliament on Wednesday (28 October 2020), Ofori-Atta said: “We expect growth to rebound strongly in 2021 at 5.7% as a result of our implementation of the transformation and revitalisation phase of the Ghana CARES (Obaatanpa) programme.”
He said, “We have also scaled down the projected 2021 fiscal deficit from 9.6% of GDP as reported in the Mid-Year Review to 8.3% of GDP, reflecting the improved revenues from the anticipated pick-up of economic activities and a more rationalised public expenditure programme.”
The minister said: “With this path, we expect a return to the fiscal responsibility threshold of 5.0% of GDP fiscal deficit and a positive primary balance earlier than the 2024 fiscal year previously announced.”
Outlining the government’s plans to revive the economy, Ofori-Atta said: “We shall pivot off the AfCFTA [African Continental Free Trade Area] headquarters in Accra for Ghana to become a dynamic regional hub.
“We have planted the seeds for a fast-paced and more inclusive recovery.
“Recognising the … roles of capital and credit, we are certain that the cleaned-up and revitalised financial sector will support our recovery efforts and sustain growth,” he added.
The International Monetary Fund (IMF) has forecast a gross domestic product growth rate of 0.9% for Ghana this year, according to its October 2020 World Economic Outlook report. The World Bank has also predicted a GDP growth rate that will make the country a top performer in sub-Saharan Africa.
Fitch Solutions is predicting GDP growth of 1.3%, also making Ghana a top performer in the region.