Restoring And Sustaining Macroeconomic Stability And Resilience For Inclusive Growth & Value Addition.pdf

# Budget Statement and Economic Policy of the Government of Ghana for 2023

## Overview

The Republic of Ghana's 2023 Budget, themed "Restoring and Sustaining Macroeconomic Stability and Resilience for Inclusive Growth & Value Addition," focuses on recovering from economic challenges while fostering sustainable development. Presented by Minister Ken Ofori-Atta, the budget aims to achieve overall GDP growth of 6.5% in 2023, with a medium-term vision targeting 7% annual growth.

## Global Economic Context

- Global Inflation: The global economic outlook is characterized by rising inflation, driven by supply chain disruptions and energy costs.
- ECOWAS Region: Ghana, as part of the ECOWAS sub-region, has shown resilience in its macroeconomic performance, with efforts to implement the African Continental Free Trade Area (AFCFTA) contributing to trade opportunities.

## Macroeconomic Performance (January-September 2022)

- Fiscal Performance: The first three quarters of 2022 saw a focus on fiscal discipline, resulting in a primary surplus of 1.7% of GDP.
- Petroleum Sector: Petroleum production and receipts have been steady, with plans to optimize utilization.
- ABFA Allocation: The African Continental Free Trade Area (ACFTA) has allocated funds for various projects, enhancing regional trade integration.

## 2023 and Medium-Term Policy Objectives

- Fiscal Outlook: The government aims to maintain a responsible fiscal stance, targeting a budget deficit of 4.7% of GDP in 2023.
- Medium-Term Vision: This includes achieving 7% annual GDP growth, diversifying the economy, and enhancing infrastructure development.
- Monetary Policy: The Bank of Ghana is expected to maintain a stable monetary environment, with inflation targeting 12%.
- IMF Engagement: Ghana continues its engagement with the IMF for a fund-supported program to ensure macroeconomic stability.

## Restoring Macroeconomic Stability and Resilience

The budget emphasizes inclusive growth strategies, focusing on:

- Sectoral Development: Administration, economic, infrastructure, social, and public safety sectors are prioritized for development and modernization.
- Structural Reform: Implementing reforms to enhance business environment, improve tax administration, and promote private sector participation.
- Debt Management: A medium-term debt management strategy aims to maintain a sustainable debt profile.

## Key Takeaways

The 2023 Budget Statement underscores Ghana's commitment to economic recovery, stability, and inclusive growth through strategic sectoral development, fiscal discipline, and monetary stability. It seeks to build on regional trade opportunities while addressing macroeconomic challenges to ensure a resilient and prosperous future for the nation.