Ghana Economy Before Covid-19 and Russia Ukraine War

Ghana Economy Before Covid-19 and Russia Ukraine War

By April 2019, Govt had successfully completed that four-year IMF programme.

i. achieving an annual average real GDP growth of 7 percent between 2017-2019 – from 3.4 percent in 2016;

ii. maintaining a fiscal deficit below 5 percent of GDP for three consecutive years;

iii. maintaining a positive primary balance for three (3) consecutive years which put our debt on a sustainable path;

iv. lowering lending rates by over 10 percentage points;

v. restructuring the banking sector to protect the savings of 4.6 million depositors and strengthening the financial sector. So far, government has spent over GHS25 billion since 2018 to clean-up the financial sector;

vi. reducing inflation from 15.4 percent in December 2016 to 7.6 percent in 2019 and preserving the integrity of the local industry;

vii. improving the gross international reserves to reach $8.6 billion or about 4 months of import cover by February 2020;

GHANA ECONOMY AFTER COVID-19 and RUSSIA UKRAINE WAR

the average ex-pump price of diesel for three oil marketing companies (OMCs) (Goil, Total, and Shell) increased by 59.7% from GH¢6.7 per litre on January 1, 2022, to GH¢10.7 by March 21, 2022.

Inflation has surged to 15.7% at the end of February 2022.

Food inflation increased from 12.8% in December 2021 to 17.4% in February 2022, while non-food inflation rose from 12.5% to 14.5% over the same period.

Data on the stock of debt as at the end of December 2021 shows that the stock of public debt increased to GH¢351.8 billion (80.1% of GDP), compared with GH¢291.6 billion (76% of GDP) at the end of December 2020.

Of the total debt stock, domestic debt was GH¢181.8 billion (41.4% of GDP), while the external debt was GH¢170 billion (38.7% of GDP).

The global and domestic developments are affecting the effective implementation of the budget.

YU DON’T NEED ANYONE TO TELL YOU THAT COVID-19 AND UKRAINE WAR ARE LARGELY RESPONSIBLE FOR CURRENT CRISIS

MyABCLive

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