Economy to grow by 6.3 percent in 2017 – Ofori-Atta

The Akufo-Addo government is projecting an overall real GDP growth of 6.3% for 2017, Minister of Finance, Ken Ofori-Atta has said.

The projected GDP for 2017 includes oil while the non-oil real GDP growth for the government within the same period is also estimated at 4.6%.

Presenting the full-year budget to the Parliament, Mr Ofori-Atta stated that, “we are confident that the policies which are discussed in detail in the Budget Statement will contribute to the achievement of our macroeconomic targets for 2017.”

Other macroeconomic targets for the government is to have inflation end 2017 at 11.2% while the overall fiscal deficit for the year is expected to end the year at 6.5% of GDP.

Gross Foreign Assets is expected to cover at least 3 months of imports of goods and services while the Primary surplus is also to end the year at 0.4% of GDP

Mr Ofori-Atta further stated that “we believe strongly that our medium-term policies, anchored on fiscal discipline, a broadened tax base, elimination of wasteful expenditures, prudent debt management strategies, complementary monetary policy, and the sustainable external balance will ensure even better macroeconomic outcomes in the medium-term.”

“Government’s policy objectives for the medium term among others will be to build the most business-friendly and industrialized economy in Africa, capable of creating decent jobs and prosperity for all Ghanaians,” the finance Minister said.

Minister of Finance further stated that, “Consequently, the macroeconomic targets for the medium-term (2017-2019) include the following: overall real GDP growth to average 7.4 percent; non-oil real GDP growth to average 5.6 percent; inflation to be within the target band of 8±2 percent in the 2018-2019 period; overall fiscal deficit to reduce to 3 percent by the end of 2019; current account deficit projected to decline to 4.8 percent of GDP in 2018 and further to 2.7 percent of GDP in 2019; and Gross Foreign Assets to cover not less than 3.5 months of import of goods and services in the medium-term.”

He further noted that “consistent with Section 16 of the PFM Act, 2016 (Act 921), we have also set the following targets for primary and secondary fiscal indicators to monitor the fiscal health of the economy towards the achievement of our fiscal policy objectives in 2017.”

“Non-oil primary deficit of 0.8 percent of GDP; public debt stock equivalent to towards trend 70.9 percent of GDP; capital spending of 12.6 percent of total expenditures; and the (domestic) revenue-to-GDP ratio of 21.4 percent,” he said.

Source: thebftonline