Ghana projects 6.8% economic growth in 2018

16 Novembre 2017

Accra, Ghana, November 16  (Infosplusgabon) - Ghna's economy is expected to grow by 6.8% in 2018, up 0.5% on the projected 2017 figure, Finance Minister Ken Ofori-Atta announced on Wednesday.

The government is targeting overall Gross Domestic Product (GDP) growth rate of 6.8%, with non-oil GDP growth rate of 5.4%, he said in the 2018 Budget and Financial Statement presented to Parliament in Accra.

“Our prime focus is to ensure that the fiscal deficit, which remains our principal fiscal anchor, continues on a downward trajectory, reaching 4.5% of GDP from the projected 2017 end-year estimate of 6.3%,” he added, according to the Accra-based radio station citifmonline.

Mr. Ofori-Atta said that the government was targeting an end-of-year inflation rate of 8%, down from the projected 2017 target of 11.2%.

The minister expressed the hope that the fiscal deficit may stabilise below 5% of GDP, as government puts in all the macroeconomic measures to grow the economy.

“Achieving this objective is not only critical, but necessary if we are to maintain the healthy primary balance surplus required to eventually reduce the rate of debt accumulation.”

Mr. Ofori-Atta said the government was optimising resources mobilization through improved tax compliance and efficient and effective revenue administration.

He announced that the government was proposing an average reduction of 13% in electricity tariffs.

Mr Ofori-Atta said the government expected to spend an estimated 62 billion Ghana cedis in the 2018 financial year. (US$1-4.4 Ghana cedis)

This is equivalent to 25.7% of the country’s GDP, and represents an annual growth of 14.5%.

He said total revenue and grants for the 2017 fiscal year had been conservatively estimated at 51 billion Ghana cedis.

The minister announced that privately-owned universities would no longer be required to pay corporate tax, adding that this would enable them to thrive and admit more students.

FIN/INFOSPLUSGABON/TOH/ GABON 2017

© Copyright Infosplusgabon