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Business News Thu, 13 Jan 2022

Ghana's economy to expand by 5.5% in 2022 - World Bank projects

Ghana's public debt stock in September 2021 was GH¢341.8 billion

Ghana to become one of the fastest-growing economies in Sub Saharan Africa

Government projects 5.8% growth for 2022


Ghana economy is projected to expand by 5.5 percent in 2022, the World Bank has projected.

While this projection may differ from that of government’s projection of an overall Gross Domestic Product (GDP) of 5.8 percent in 2022, the World Bank estimates that Ghana will most likely become one of the fast-growing economies in Sub Saharan Africa.

World Bank’s January 2022 Global Economic Prospects report said elevated commodity prices are projected to both support recovery in extractive sectors and boost export and fiscal revenues.

This. the institution said, will help ease some of Ghana’s pandemic induced fiscal pressures and external financing needs.

“Many Sub-Saharan Africa countries saw a marked deterioration in fiscal balances because of deployed relief measures, depleting already-narrow fiscal space (Ghana, Mozambique, Rwanda). This, together with constraints on financing and pressures to improve debt sustainability, will lead to a much less supportive fiscal stance across the region over the forecast horizon.”

“Fiscal adjustments are expected to predominantly happen on the expenditure side with a bigger reduction in fiscal deficits in resource-rich countries, partly reflecting revenue boosts from higher commodity prices and consolidation efforts in some countries”, the World Bank added.

Ghana’s economy, according to the Ghana Statistical Service expanded by 6.6 percent in the third quarter of 2021 attributed to main sub-sectors such as Education; Health & Social Works; Information & Communication; Professional Administrative & Support; Hotel & Restaurants among others.

Meanwhile, the World Bank has forecasted a global growth rater of 5 percent in 2023 while that for 2022 was cut from 4.3 percent to 4.1 percent.
Source: www.ghanaweb.com
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