Akufo-Addo hints: Economy Is Recovering …GDP up 3.2% in first half of 2023 … Services & Agriculture record 6.3%, 6.2% respectively

The once-ailing Ghanaian economy is rebounding, the President, Nana Addo Dankwa Akufo-Addo has said. According to the president, measures put in place by the government were yielding results, with the support of the private sector.

Addressing the gathering at the ceremony to commission phase II of the Zonda Sinotruck Assembly Plant on Tuesday, October 17, 2023 President Akufo-Addo was enthused by the confidence the company had in the rebounding of the economy to expand.

“It is indeed significant that as the company begins commercial production of vehicles at this new plant, it is also investing in a third phase of its expansion, which for me is a testament to its confidence in the growing trajectory of truck production in Ghana, as well as in the rebounding of the Ghanaian economy.

DEVELOPMENT

According to the World Bank, Gross Domestic Product (GDP) growth rebounded to 3.2% in the first half of 2023. This was on the back of strong growth in services (6.3%) and agriculture (6.2%).

Reports also indicate that data from the first half of this year showed that fiscal balance improved to a deficit of 0.8% of GDP, while primary balance recorded a surplus of 1.1% of GDP.

In August 2023, inflation, largely driven by food prices, skyrocketed to 40.1% but eased to 38.1% in September 2023.

IMF

Ghana is currently under an International Monetary Fund (IMF) extended credit facility for three years at $3 billion to help restore macroeconomic stability.

Having secured the first tranche, which was $600 million, the release of the second amount rests on the discipline of the economy to grow.

After an IMF team visited Ghana to access the growth, a staff-level agreement was reached and a joint news conference was held to indicate that the country was on track to receive the second tranche, considering the domestic growth.

However, the Fund was hoping Ghana would reach a debt-restricting deal with the country’s bilateral creditors, within six to eight weeks to unlock the second amount of $600 million. Reports suggest that China, the highest creditor to Ghana, is ready to play ball.

According to the Minister of State at the Ministry of Finance, Dr. Mohammed Amin Andam, the economy outperformed the IMF projection.

He told Accra-based CITI FM that the IMF projected the economy to grow at 1.5% this year, and by half of the year, the economy was growing at 3.2%.

NEW FACTORIES

In a related development, the Minister for Trade and Industry, Kobina Tahir Hammond has announced that 43 new factories have joined the already existing ones.

He mentioned in his address at the commissioning of phase II of the Zonda Sinotruck Assembly Plant that the facility was a fully funded One District, One Factory (1D1F) project.

He continued, “Mr. President, I am excited to note that the number of 1D1F companies actually in operation, not those under construction, not those in the pipeline, those that are functionally operational, Mr. President, has increased from 126 companies in the year 2020 to the current number, Mr. President, of 169. Thanks again to your inspirational leadership.”