Ghana’s government has announced a series of economic measures to sustain the country’s recovery from the impact of the global pandemic and the spillage of two major dams. The measures approved by the cabinet after a three-day retreat include fiscal consolidation, spending controls, growth expansion, and job creation.
According to Information Minister Kojo Oppong Nkrumah, the cabinet was pleased with the results of the Post-Crisis Economic Growth (PC-Peg) program, developed in collaboration with the International Monetary Fund (IMF). After reaching a staff agreement, the IMF recently approved the next tranche of $600 million balance of payment support for Ghana.
Oppong Nkrumah said that the PC-Peg program had achieved relative stability and recovery in the economy, with inflation coming down to 38%, the cedi stabilizing, international reserves improving, and fiscal deficits narrowing. He added that growth and jobs were also picking up, and more opportunities would be created for the youth.
The minister said the new measures aimed to consolidate stability further and ensure more growth and jobs in 2024. He said that the government would tighten spending within the revenue limit of the country and focus on priority areas such as infrastructure, health, education, and agriculture.
He also said that the cabinet discussed the humanitarian crisis in Lower Volta, where thousands of people have been displaced by floods caused by the spillage of the Akosombo and Kpong dams. He said the government worked with local authorities and relief agencies to assist the affected communities and find long-term solutions to prevent future disasters.
According to the African Development Bank, Ghana’s economy, one of the fastest-growing in Africa, contracted by 1.1% in 2020 due to the pandemic but rebounded by 3.1% in 2021. The bank projects that GDP growth will increase to 4.6% in 2023 and 5.1% in 2024, driven by strong performance in the oil, gas, mining and services sectors.
The bank also commended Ghana for its effective response to the pandemic, which included providing social protection and stimulus packages to vulnerable groups and businesses. The bank said Ghana had shown resilience and innovation in its economic management and governance.
Ghana’s economic outlook remains positive as the government continues implementing measures to sustain its recovery and achieve its vision of becoming a prosperous and inclusive nation.
Source: GhanaWeb
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