Ghana revises GDP growth upward to 3.1% in 2024

Ghana expects its economy to grow by 3.1 per cent this year, up from the earlier projection of 2.8 per cent, following a rebound in key sectors. Courage Boti, an Economist at GCB Capital, provided insights on the country's mid-year budget review. The mid-year budget review highlighted key issues such as economic and fiscal performance in the first quarter, growth measures, expenditure performance, and debt sustainability. Boti emphasized the importance of revenue and expenditure management. The government closed a significant revenue gap in the second quarter, with a focus on non-oil tax revenue and expenditure rationalization. Despite challenges, the government aims to maintain fiscal discipline and avoid excessive spending. The public debt has risen to 70.6 percent of GDP, mainly due to currency depreciation, impacting living costs for Ghanaians. However, efforts to stabilize the currency and attract investment may lead to improved economic conditions. Boti expressed optimism about stability in the currency market and potential inflows from external debt restructuring. The government faces political challenges as it heads into elections, with rising living costs affecting its popularity. The decision to avoid excessive pre-election spending reflects an awareness of public sentiments. Boti highlighted the need for effective communication to convey the government's achievements and offer hope for economic recovery, acknowledging the uphill battle ahead. The coming months will be crucial in determining the government's fate.