GSS: Ghana aims to rebase GDP every 5 years
Fitch says despite the introduction of US tariffs, it maintains a 4.2 per cent economic growth forecast for Ghana this year, noting that the adverse impact from global trade tensions will be offset by the rise in gold prices. Meanwhile, Ghana's aims to reduce its GDP rebasing from 10 to five years. Benjamin Boachie, the Chief Economist at Secondstax joins CNBC Africa to unpack these stories.
Mon, 05 May 2025 11:41:59 GMT
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AI Generated Summary
- Fitch maintains a 4.2 per cent economic growth forecast for Ghana, citing the rise in gold prices as a counterbalance to US tariffs and global trade disruptions.
- The establishment of the Gold Board in Ghana is expected to enhance the country's gold value chain and unlock potential economic value, signaling strategic opportunities for future growth.
- Experts caution against prioritizing statistical adjustments such as GDP and CPI rebasing over addressing immediate economic challenges, emphasizing the importance of consistency in economic policies.
Ghana's economy is positioned for growth despite the challenges presented by global trade tensions, according to recent forecasts and developments in the country. Fitch Ratings has maintained a 4.2 per cent economic growth forecast for Ghana this year, citing the rise in gold prices as an offset to the adverse effects of US tariffs. Benjamin Boakye, Chief Economist at Second Stacks, highlighted Ghana's trade dependence on commodities like gold, cocoa, and oil, which have served as safe havens during times of global economic turmoil. The anticipated establishment of the Gold Board in Ghana is expected to enhance the country's gold value chain, potentially increasing its economic value significantly in the long term. The move is seen as a strategic step that could yield tertiary benefits for Ghana's economy over the coming years. While there have been discussions about rebasing Ghana's GDP and Consumer Price Index (CPI) every five years, some experts caution against prioritizing cosmetic changes over addressing immediate economic challenges. Boakye underscored the importance of winning the inflation fight before focusing on statistical adjustments, emphasizing the need for consistency in economic policies. The recent agreement between Ghana and the International Monetary Fund (IMF) on the fourth review of the Extended Credit Facility (ECF) was hailed as a vital support for Ghana's debt restructuring efforts. Boakye credited the IMF program for providing a lifeline to Ghana's economy and expressed optimism about meeting future targets under the agreement. Overall, Ghana's economic landscape presents opportunities for growth and resilience, with a cautious approach needed to navigate uncertainties in the global trade environment.
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