Gov’t revises 2024 macro-economic targets; inflation maintained at 15%

The government of Ghana has announced changes to the country's macro-fiscal targets for 2024. 

The GDP growth rate has been revised up from 2.8% to 3.1%, while the Non-Oil Real GDP growth rate has been raised from 2.1% to 2.8%. The government claims that these modifications reflect domestic and global economic realities. 

On July 23, 2024, the Minister of Finance, Dr. Mohammed Amin Adam, presented the Mid-Year Budget before Parliament and declared that the government remained committed to its economic trajectory.

The end-of-year inflation target was maintained at 15%. 

The Minister announced modifications to the fiscal framework for 2024, explaining that the primary balance on a commitment basis remains unchanged at the targeted surplus of 0.5% of GDP, in line with the IMF-supported PC-PEG objectives.

Gross International Reserves (including oil funds and encumbered/pledged assets) are expected to cover at least 3.0 months of imports, up from 1.7 months previously.

The Finance Minister also stated that total revenue and grants had been revised up by 0.5%. In 2024, overall revenue and grants were revised to ¢177,220 billion (17.4% of GDP), up from the previous target of ¢176,414 billion (16.8% of GDP). 

That of spending was reduced down by 2.1%. The total expenditure (commitment) has been revised to GH¢219,749 billion (21.5% of GDP), from the previous budget projection of GH¢226,681 billion (21.6%). 

The reduction is mostly due to a decrease in Interest Payments of GHs7,934 billion to reflect the impact of the external debt restructuring on external interest payments.

Source: Florence Kyei/ Lead News