Ghana’s GDP grew 6.6% first quarter of 2017 – Minister
Ghana’s GDP grew 6.6 per cent in the first quarter of 2017, against 4.4 per cent for the same period in 2016, the Minister of Finance, Ken Ofori-Atta has said.
Presenting the 2017 mid-year review of the fiscal policy review of the 2017 budget statement to Parliament, the Minister said inflation reduced to 12.1 per cent at the end of June 2017, from 15.4 per cent at end December 2016; adding, interest rates are on the decline.
“For example, the 91-day treasury bill rates have reduced from 16.4 per cent at end 2016 to 12.08 per cent at end June 2017; the fiscal deficit as a percentage of GDP for the period January-June 2017 was 2.7 per cent compared with a deficit of 4.0 percent over the same period in 2016,” he said.
Mr. Ofori-Atta told Parliament that the primary surplus for January-June 2017 was 0.6 per cent of GDP compared to a deficit of 1.3 per cent over the same period in 2016; and the Gross International Reserves at the end of June 2017 was $5.9 billion, the equivalent of 3.4 months of import cover, up from $4.9 billion at the end of December 2016 (equivalent to 2.8 months of import cover).
According to the Minister, because of the prudent economic policies, improved fiscal discipline and competent management of the economy, the macro-indicators for the first half of the year are pointing in the right direction.
“Typical of the strengthening performance is the fact that for the first six months of the new Akufo-Addo government, both the fiscal deficit and primary balance outperformed their targets. The exchange rate is stabilizing, inflationary pressures have eased and interest rates are trending downwards. Progressively, confidence is being restored in the economy and we are confident that this positive trend will be sustained in the months and years ahead,” he said, adding, “Mr. Speaker, these indicators clearly show that the economy is on the path of recovery and investor confidence has been restored. Additionally, the business and consumer confidence surveys by the Bank of Ghana conducted in June 2017 broadly reflects positive sentiments in the direction of the economy as noted in the July edition of the Bank of Ghana’s MPC press release.”
By Emmanuel K. Dogbevi