President Nana Akufo-Addo

President Nana Akufo-Addo says Ghana’s economy will rebound strongly this year to nearly 5.0% of Gross Domestic Product, above the International Monetary Fund’s (IMF) 2021 January projection of 3.2% growth for Sub-Saharan Africa for 2021.

Importantly, the IMF forecasts a growth rate of 4.2% for the country this year.

In his State of the Nation Address, the President said the medium-term outlook supported by the implementation of the Ghana CARES Programme is bright, adding “we are confident that, together, we will emerge from the COVID-19 pandemic with a stronger and more resilient economy.

“If we are to oversee the rebirth and growth of our economy, our people must be healthy, and not succumb to COVID-19.”

The president further said “on 24th February, government secured the first batch of vaccine doses from the COVAX Facility. The vaccination campaign is currently ongoing, with 262,335 Ghanaians receiving the first dose of the vaccines as at 10:30 am this morning. The target is to vaccinate 20 million Ghanaians, and government is working hard towards realising this goal.

“We remain on course to taking delivery of some 17.6 million, six vaccine doses by June, with more to come in the course of the year.”

Economy contracted in quarter 3, 2020

Ghana’s economy contracted for the second consecutive period in the third quarter (-1.1%) of 2020,  but at a lower rate than in the second quarter.

This was, however, compared with a Gross Domestic Product growth rate of 5.6% the same period in 2019.

The contraction of the economy in the third quarter was largely due to the impact of covid-19 pandemic which saw the economy being largely tightened during the period.

According to figures from the Ghana Statistical Service, the economy with oil contracted by 1.1%, but grew by -0.4% without oil. 

IMF forecasts 4.2% GDP in 2021

The IMF forecasts a growth rate of about 4.2% for Ghana this year.

This is consistent with Moody’s 4.0% and Fitch Solutions’ 4.8% forecasts but in sharp contrast to World Bank’s 1.4%.

According to the Fund, Ghana’s growth rate will be higher than Sub-Saharan Africa’s regional average of 3.2 percent.

“In 2021, sub-Saharan Africa will recover only gradually. Regional growth next year is forecast at 3.1%. This is a smaller expansion than expected in much of the rest of the world, partly reflecting limited policy space to sustain a more expansionary fiscal stance in most countries,” he said.