The government has revised the real Growth Domestic Product (GDP) of the country to 1.5% in 2023, from the earlier 2.8%.
This indicates that most sectors and subsectors of the economy will struggle to expand because of the fiscal consolidation measures as captured in the International Monetary Fund (IMF) document.
Announcing this in the Mid-Year Budget Review, Finance Minister, Ken Ofori-Atta, also said the non-oil real GDP Growth rate is estimated at 1.5%, down from the earlier forecast 3.0%.
He said 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.
Overall GDP Growth is, however, projected to rebound to 2.8%, 4.7%, and 4.9% in 2024, 2025 and 2026, respectively. This, Mr. Ofori-Atta, said is a result of 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 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”, he added.
Economy expands by 4.2% in quarter 1, 2023
Ghana’s economy beat most analysts’ forecasts, expanding by 4.2% in the first quarter 2023, the Ghana Statistical Service has disclosed.
This is far higher the 3.1% recorded during the same period in 2022.
According to the GSS, Public Administration, Defense & Social Security (37.6%); Health & Social Work (31.6%); Education (26.0%) and Information & Communication (18.9%) drove the growth rate.
The Services sector recorded the highest growth rate of 10.1%, followed by the Agriculture sector with a growth rate of 4.8%. However, Industry contracted by 3.2%.
Seven sub-sectors contracted in quarter one of 2023. They are Water Supply, Sewerage, Waste Management & Remediation Activities (- 6.4%); Construction (-6.0%); Wholesale and retail trade; repair of motor vehicles and motorcycles (-5.3%); Fishing (-3.3%); Mining and quarrying (-2.9%); Manufacturing (-2.5%) and Hotels and Restaurants (-0.2%).