We’ll Expand Economy This Year, Minister Vows

After achieving stability and meeting key economic indicators, government is ready to expand the economy this year and “create more opportunities for all Ghanaians to live more decently,” Finance Minister, Ken Ofori Atta has stated.

“Our citizens should have much better lives than what we are seeing now and we are confident that this year they will feel the impact of macroeconomic stability and growth we have been pursuing,” the Minister told journalists in Accra yesterday.

Government, he stated had spent last year stabilising the economy and had successfully completed the fourth review programme of the International Monetary Fund (IMF).

“On the macro side it is impressive to be able to fiscally contract and at the same time have the type of growth that we have experienced; the response from the international community is also clear looking at the tightening of the yields,” Mr Ofori Atta stated.

The Minister noted that consolidating the economic gains made in 2017 would be the focus of government as it seeks to execute its transformational agenda and continues with its structural reforms.

He pledged the Ministry’s commitment to providing the needed support to all other ministries “so they will be effective in the delivery of major government initiatives.”

“We have instituted measures for a more orderly and timely disbursement of funds in a more predictable way and that’s a commitment we are giving and we will also make very deliberate efforts to ease the tension and stress that businesses endure in the delivery of services.” Mr Ofori Atta added.

Deficit reduced 

Government had outperformed the deficit target of 6.3%, hitting 6%
Low GDP-to-debt ratio
Government reduced the total debt to GDP ratio to under 70% 

GDP soars
 
The Finance Minister noted that government had exceeded the annual Real GDP growth target of 6.3% (forecast 7.9%, average. Q3 8.3%) 

Inflation drops 

End-year inflation from was reduced from 15.4% in 2016 to 11.8% in December, 2017. Inflation (January 2018) declined further to 10.3%.

Govt deals with legacy debt

Reduced energy sector legacy debt issues via the ESLA bond
Debt 
Rate of debt accumulation has seen a significant decline from 47.4% in 2013 to 13.5% in November, 2017 due to prudent management of the economy.

Arrears, GH¢3bn cleared

Government has cleared about GHs3 billion in arrears compared with GH¢3.7 billion budgeted in 2017.

As at February 2018, government had cleared GH¢600 million in arrears, the Minister disclosed.

“Our strategy going forward is to clear the validated stock of arrears in accordance with our 2018 budget programme,” he said

Source: The Finder