ACCRA - Ghana's Finance Minister Ken Ofori-Atta has presented the country's 2024 budget, signaling a positive economic outlook with projections of accelerated growth and declining inflation. The government expects the economy to expand from a 2.3% growth rate in 2023 to at least 2.8% in 2024, with the potential to reach up to 5% by 2027.
The budget reflects Ghana's commitment to stabilizing its economy following a challenging period marked by high inflation rates, which peaked at 35.2% in October. With the implementation of central bank policies, inflation is anticipated to fall to 15% by the end of 2024. The budget also includes forecasts of non-oil real GDP growth of at least 2.1%, aiming for a primary balance surplus of 0.5%, and foreign exchange reserves sufficient to cover at least three months of imports.
In an effort to restore investor confidence and meet the conditions of the $3 billion International Monetary Fund (IMF) bailout received in May, the budget excludes measures that would have been popular with voters but could jeopardize financial stability. This bailout was crucial in preventing Ghana from falling into debt distress.
The government's recent success in domestic debt restructuring has been acknowledged by Fitch Ratings through an upgrade of Ghana's local-currency credit score earlier this month. The restructuring has led to significant savings on debt servicing, contributing to the nation's economic resilience.
Optimism is also bolstered by the government's expectation to finalize a memorandum of understanding on debt relief with official creditors soon. This agreement is set to unlock an additional $600 million from the IMF, providing further support for Ghana's economic recovery efforts.
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