Ghana’s economy is gaining strength – Ken Ofori Atta

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GDP estimates for 2020 and 2021 show that although Ghana’s economy has developed faster than predicted, debt levels have remained low.

ASS released the official Q4 and yearly GDP data for 2021 on April 20, 2022. (GSS).

As of Q4 2021, the GSS predicts real GDP growth of 7.1% over Q4 2020. A similar 7.6% increase in non-oil real GDP during the same period in 2020.

It was 5.4 percent year-on-year, exceeding both the 4.4 percent prediction and the SSA average.

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A revised 0.5% growth rate in 2020 confirmed the economy’s recovery after the COVID-19 epidemic.

In 2021, the oil sector’s real GDP rose 6.9%, exceeding the target. A rise from GH391,940.7 million in 2020 to GH459,130.9 million in 2021 is forecast.

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A growth of GH378,147.9 million in 2020 to GH437,000 in 2021 is predicted.

All economic indicators based on GDP ratios will update to reflect the new GDP numbers. Deficit and revenue ratios are some of the most critical in determining debt sustainability.

Due to the altered 2021 GDP, it also impacts the nominal 2022 GDP objective and growth rate.

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The budget deficit (including energy and Finsec payments) is expected to decline to 14.7% of GDP by 2020. The budget deficit for 2021 was also reduced.

From 80.1 percent in 2016, Ghana’s state debt will fall to 76.6 percent in 2021. Conversely, the 2020 debt stock has declined from 76.1% to 74.44%, showing a slower debt creation.

A statement published on Wednesday April 27 said the Ministry of Finance would update its debt sustainability analysis and alter its GDP predictions for 2022 and medium-term to reflect the good events in 2021 and recent policy choices supporting strong economic growth.

They show that the economy is recovering post-COVID-19, debt accumulation is decreasing, and fiscal growth is slowing” a statement from the Finance ministry read.


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