The Minister for Finance, Mr. Ken Ofori Atta has said the Bank of Ghana’s surveys in August 2020 indicates that consumer confidence is bouncing back strongly and is currently above pre-COVID-19 lockdown levels.
He said Business confidence has also increased, although below pre-lockdown levels and About 95 percent of businesses surveyed showed strong optimism, reflecting the improving macroeconomic conditions, stability in the exchange rate, lower input prices, moderation in lending rates, and positive industry prospects.
Presenting the 2021 first-quarter budget in Parliament, Mr. Ofori Atta said the projected GDP growth rate 2020 reported in July has been revised from 0.9 percent to 1.9 percent to reflect these dynamics and As the Bank of Ghana stated ‘the green shoots of a rebound in economic activity’ are already with Ghana.
“This and other assessments provoke a degree of optimism and reveals that the swift, bold, and effective measures implemented by Government have been key in quickening the the pace of economic recovery. This is the competent leadership we promised under President Akufo-Addo. Indeed, the President’s decisive and compassionate leadership in these challenging times have been internationally acknowledged and has added to our reputation as the Black Star of Africa.”
“Our efforts to protect lives and preserve livelihoods, coupled with the impact of the pandemic on revenues and expenditures resulted in a fiscal deficit of 11.4% of GDP. As already indicated in the presentation to this august House in July, we have well-thought-out Ghana Cares Obaatanpa plan and strategy to return this economy to a more sustainable fiscal path in the medium-term.”
The Minister added that “the 2020 Fiscal Framework which increased the fiscal deficit from 4.7 percent of GDP to 11.4 percent in the 2020 Mid-Year Review. The fiscal operations of the economy for the January to September 2020 period show that on a provisional basis both revenues and expenditures exceeded their respective targets resulting in the fiscal deficit of 9.0 percent of GDP, against a programmed deficit of 8.9 percent of GDP. More specifically, total revenues and grants for the period which totaled GH¢36.7billion exceeded the target of GH¢35.7 billion by GH¢972.7million or 2.7 percent. Total expenditures, including arrears clearance, on the other hand, amounted to GH¢71.3 billion against a target of GH¢70.0 billion showing a deviation of GH¢1.3 billion or 1.8% from the target. The overall fiscal deficit resulting from the revenues and expenditure performance for the period through September 2020 is GH¢34.6 billion or 9.0 percent of GDP against a target of GH¢34.3 billion or 8.9 percent of GDP. The corresponding primary balance was a deficit of GH¢15.7 billion or 4.1 percent of GDP against the target of GH¢15.4 billion or 4.0 percent of GDP.”
Source: Mybrytfmonline/Kofi Atakora
