- Ghana's economy is rebounding stronger than anticipated
- Non-oil GDP growth
- Re-instituting integrated property tax system
Ghana’s economy is rebounding stronger than anticipated, with improved macroeconomic indicators and successful debt restructuring efforts, according to Finance Minister Dr. Mohammed Amin Adam. Delivering the 2024 Mid-Year Fiscal Policy Review, Dr. Adam highlighted key achievements, including:
- Conclusion of the Extended Credit Facility’s second review with the IMF, resulting in a $360 million disbursement
- Progress in external debt restructuring efforts, with $5.1 billion covered by the Official Creditor Committee and $2.8 billion in debt relief
- Negotiations with Eurobond holders, resulting in $4.7 billion in debt cancellation and $4.4 billion in debt service relief
Economic Indicators Show Improvement
- GDP growth: 2.9% in 2023, 4.7% in Q1 2024 (highest since Q2 2022)
- Non-oil GDP growth: 3.3% in 2023, 4.7% in Q1 2024
- Inflation: 23.2% at end-December 2023, down from 54.6% in December 2022
- Current account: surplus of $1.41 billion, driven by strong remittances growth
Revised Macroeconomic Framework
- Real GDP Growth rate revised upwards to 3.1%
- Non-Oil Real GDP Growth rate revised upwards to 2.8%
- Headline inflation target remains unchanged at 15% for end-2024
Fiscal Discipline and Revenue Projections
- Government committed to living within its means, with expenditures reined in and revenue target exceeded by 0.2% by end-June 2024
- Total Revenue and Grants revised upwards by 0.5% to GH¢177.22 billion (17.4% of GDP)
Plans to Achieve Targets
- Broadening tax base, simplified digital taxation scheme, and electronic book-keeping system
- Onboarding 2,000 more taxpayers onto e-VAT by end-2024
- Re-instituting integrated property tax system
Road Tolls to be Reintroduced
- Framework to be developed for re-introduction of Road and Bridge Tolls in 2025
