The Overall Real Gross Domestic Product (GDP) for 2021 grew strongly by 5.4 per cent compared to 0.5 per cent recorded in 2020 and the revised 2021 annual target of 5.1 per cent, the Finance Minister, Ken Ofori-Atta has said in the 2022 mid-year budget review.
Presenting the budget in Parliament on Monday, July 25, he said, at the time of presenting the 2022 Budget in November last year, we
provided information on macroeconomic developments for the first nine months of the 2021 fiscal year.
“We now have received updated information through to the end of December 2021,” he said.
“Overall Real GDP for 2021 grew strongly by 5.4 per cent compared to 0.5 per cent recorded in 2020 and the revised 2021 annual target of 5.1 per cent.”
“Non-oil GDP growth also increased to 6.9 per cent compared to a growth of 1.0 per cent recorded in 2020, and the revised 2021 target of 7.0 per cent. The overall budget deficit of GH¢28,095 million (5.6% of GDP), against a deficit target of GH¢19,730 million (3.9% of GDP).”
“Primary balance for the period was a deficit of GH¢7,618 million (1.5% of GDP), against a deficit target of GH¢672 million (0.1% of GDP). Public-debt-to-GDP ratio stood at 76.6% at the end of 2021.”
Regarding the Macroeconomic Performance for half-year 2022, he said provisional Q1-2022 National Accounts Statistics published by Ghana
Statistical Service (GSS) in June 2022 shows that the overall real GDP growth for the first quarter of 2022 was 3.3 per cent compared to 3.6 per cent recorded in the same period Non-oil GDP for the first quarter of 2022 grew by 3.7 per cent compared with the Q1-2020 growth of 5.3 per cent.
Regarding the revision to the 2022 Macroeconomic Framework, Mr Ofori-Atta said “as I have already indicated, the macroeconomic environment has significantly changed, prompting the revision of the macroeconomic framework.
“Furthermore, based on the developments for the first six months of 2022 and outlook for the rest of the year, we have accordingly revised the macro-fiscal targets for 2022 as follows: Overall GDP Growth rate of 3.7 per cent down from 5.8 per cent; Non-Oil GDP Growth rate of to 4.3 per cent down from 5.9 per cent, End period inflation of 28.5 per cent up from 8 per cent; The overall fiscal deficit of 6.6% of GDP down from 7.4%.”
“Primary surplus of 0.4% of GDP up from a surplus of 0.1% of GDP; and The Gross International Reserves of not less than 3 months import cover.”
