The IMF has projected a 2.7% growth in real GDP for Ghana for the 2024 fiscal year in its October 2023 Regional Economic Outlook Report.
The projection is some 0.1% below the 2.8% real GDP growth rate forecasted by the Government in the 2024 budget statement.
The increased growth rate projection by the IMF hinges on increased expenditure by Government for 2024 and general improvements in the country’s macroeconomic indicators such as inflation, exchange rate, reduced debt stock, suspension in external debt service among others.
Total government expenditure projected for the 2024 fiscal year amounts to some GHS 226bn.
The projected expenditure represents approximately 21.6% of the country’s current Gross Domestic Product (GDP).
The expenditure projection according to Finance Minister Ken Ofori-Atta, reflects a reduction of 6.1% of GDP in total expenditures (commitment basis) relative to the outturn in 2022.
“This large decrease comes from the combination of fiscal consolidation efforts of 4.9% of GDP, reflecting an adjustment in revenue by 1% and primary expenditure by 4% of GDP,” noted the Finance Minister in November.
Real GDP growth for 2023 is projected by the IMF to be 1.2%, some 0.3% less the 1.5% real GDP target set in the 2023 mid-year review budget.