The government has adjusted its economic growth target to 3.1%, up from the initial 2.8%, following the successful debt restructuring agreement and other positive developments in the economy. However, this new target is lower than the 4% projected by Finance Minister Dr. Mohammed Amin Adam during a gathering of Ghanaians in the United Kingdom shortly after securing the deal with external bondholders.
This revision was announced in the Mid-Year Budget Review presented on Tuesday, July 23, by Dr. Mohammed Amin Adam, marking his first budget review since his appointment earlier this year in a cabinet reshuffle. The Finance Minister explained that the growth rate and other macroeconomic targets were revised to reflect the latest economic developments, both domestic and global, including the impact of the debt restructuring.
Key revisions include:
- Non-Oil Real GDP Growth rate increased from 2.1% to 2.8%
- Growth in GDP deflator reduced from 20.2% to 17.5%
- Nominal overall GDP adjusted from GH₵1,050 billion to GH₵1,020 billion
- Non-Oil GDP revised from GH₵979 billion to GH₵977,093 billion
Despite these changes, the end-of-year inflation target remains at 15%. The Primary Balance on a commitment basis is maintained at a surplus of 0.5%, and Gross International Reserves (including oil funds and encumbered/pledged assets) are expected to cover not less than 3.0 months of imports.
