Economic outlook – Adomonline.com https://www.adomonline.com Your comprehensive news portal Mon, 27 Jan 2025 10:25:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 https://www.adomonline.com/wp-content/uploads/2019/03/cropped-Adomonline140-32x32.png Economic outlook – Adomonline.com https://www.adomonline.com 32 32 Ghana’s projected growth rates for next 5 years by IMF below potential – IEA https://www.adomonline.com/ghanas-projected-growth-rates-for-next-5-years-by-imf-below-potential-iea/ Mon, 27 Jan 2025 10:25:06 +0000 https://www.adomonline.com/?p=2497400 The Institute for Economic Affairs (IEA) has described the projected growth rates for Ghana’s economy in the next five years, as provided by the International Monetary Fund, as being below its potential.

In its bi-monthly Economic Outlook, the IEA stated that Ghana has excess resources and capacities that could enable it to grow at higher rates, which are necessary to accelerate the country’s development and poverty alleviation. It added, “What is required is to leverage these resources to increase investments in physical capital, human capital, and technology to drive economic growth.”

Despite the strong and rising growth in the third quarter of 2024, Ghana’s growth for the year was projected at just 4.0%. This suggests that growth will slow down considerably in the fourth quarter of 2024.

The IEA noted that the reason for the slowdown was not immediately known.

“It could be due to a projected decline in the value of some of Ghana’s major commodities, either from lower volumes and/or prices,” it stated.

The projected growth of 4.0% for Ghana in 2024 is slightly higher than the growth rates of 2.9% and 3.8% recorded in 2023 and 2022, respectively.

Real GDP growth is projected in the IMF programme to rise to 4.4% in 2025, 4.9% in 2026, and then plateau at 5.0% during 2027-2029.

“These growth rates are, however, below the country’s potential,” the IEA expressed concern.

Economy expanded by 7.7% in Q3 2024

Ghana’s economy expanded by 7.7% in Q3, much higher than the 2.2% recorded in the same period of 2023. Non-oil real GDP growth was a little lower at 7.2%.

The strong growth recorded in overall real GDP in Q3 2024 was fueled by extractives, largely oil and gold.

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]]> Economic outlook bright in the medium term – Finance Minister Amin Adam https://www.adomonline.com/economic-outlook-bright-in-the-medium-term-finance-minister-amin-adam/ Fri, 24 May 2024 13:26:46 +0000 https://www.adomonline.com/?p=2399605

Dr. Adam has consequently called on stakeholders to work together towards consolidating the positive gains being made and ensure that the country’s economy continues on a path of sustainable growth and development.

Speaking at a press conference on May 24 to update the public on the country’s economy, he stated that “We want to increase growth from the current 2.9% to 5% in the medium term. We want to reduce inflation from the current 25% to eight plus or minus two percent in 2025. We want to improve the balance at the primary balance on commitment from a deficit of 0.3% of GDP in 2023, to a surplus of 1.5% in 2025. We want to increase the tax-to-GDP ratio from the current 14% to 18% in the medium term.”

He projected that, the government will fully restore sustainability by 2028 and further improve gross international reserves to cover at least 4.5 months of imports in the medium term.

Dr Adam emphasised that despite current challenges, the country’s economic outlook remains bright, with the government committed to implementing measures that will ensure long-term economic stability and growth.

“And so, ladies and gentlemen, the medium-term economic outlook is bright. It’s bright. It is good, and we all must put our hands on deck. We all must continue to support the efforts of government. This is the government we have, and this is the country that we have. We cannot go anywhere else and find better opportunities for ourselves. We have to create these opportunities here for ourselves and for our children and grandchildren,” he noted.

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