Gov’t revises 2024 macro-economic targets; inflation maintained at 15%

Government has announced revisions to Ghana’s macro-fiscal targets for 2024.

The GDP growth rate has been revised upward from the initial 2.8% to 3.1%, while the Non-Oil Real GDP growth rate has been adjusted from 2.1 percent to 2.8 percent.

Government asserts that these revisions reflect both domestic and global economic developments.

Presenting the Mid-Year Budget in Parliament on July 23, 2024, the Minister of Finance, Dr. Mohammed Amin Adam stated that government remains committed to its growth trajectory.

End-year inflation target was maintained at 15%.

Announcing the revisions to the 2024 fiscal framework, the Minister explained that the primary balance on a commitment basis remains unchanged at the targeted surplus of 0.5% of GDP, in line with the IMF-supported PC-PEG objectives.

Gross International Reserves (including oil funds and encumbered/pledged assets) is expected to cover not less than 3.0 months of imports up from the initial 1.7 months of imports cover.

The Finance Minister also added that total revenue and grants have been revised upward by 0.5%.

Specifically, total revenue and grants were revised to ¢177,220 billion (17.4% of GDP) in 2024, from the 2024 budget target of ¢176,414 billion (16.8% of GDP).

That of expenditure was revised downwards by 2.1%.

Total Expenditure (commitment) has been revised to GH¢219,749 billion (21.5% of GDP) from the original budget projection of GH¢226,681 billion (21.6% of GDP).

The revision is largely on the back of Interest Payments which has been revised downwards by GHs7,934 billion to reflect the impact of the external debt restructuring on external interest payment.