In-Depth Analysis
Ghana
Economic growth has accelerated sharply in recent years and rising oil production will continue to support the economy moving forward. That said, while reforms brought about under the auspices of an IMF support programme have aided in correcting macroeconomic imbalances, the poor finances of state-owned enterprises and the risk of fiscal slippages still serve to fuel debt sustainability concerns.
Ghana’s economic recovery amid the Covid-19 pandemic has surprised to the upside. In addition to two stronger-than-expected GDP growth figures during H1, the IHS Purchasing Managers’ Index and Bank of Ghana’s Composite Index of Economic Activity point towards a robust economic recovery in Q3. However, a second wave of Covid-19 infections in Ghana would be disastrous, as both monetary and fiscal authorities have reached a stimulus ceiling. Specifically, inflation has spiked and remained above the inflation target for seven consecutive months, while the fiscal deficit has soared against the backdrop of an already limited fiscal space environment pre-coronavirus. (Source: Ghana Quarterly Update, published November 2020.)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-4.5 |
|
Consumer Price Index (% change y-o-y, avg) |
7.5 |
|
Current Account Balance (as a % of GDP) |
-2.8 |
|
Real GDP (annual % change) |
6.5 |
|
GDP per Capita, US$ |
2,200.5 |
|
Import Cover (months) |
3.1 |
|
Population, million |
30.4 |
| Total External Debt (as a % of GDP) |
42.5 |