Spending the previous year to stabilize the country’s economy, the Ghanaian GDP growth rebounded to 9.3 percent in Q3 2017 from 3.5 percent in the same period of 2016, while its government intends to wean the country off bailouts through sustained fiscal discipline and a battle against corruption.
Ghana’s total debt had increased from $29.2 billion (73.1% of GDP) at the end of 2016, to $31.7 billion (68.1% of GDP) in 2017, reflecting a slowdown in the rate of external debt accumulation, as well as higher GDP growth.
In a bid to stabilize the economy, President Nana Akufo-Addo administration spent the last year clearing huge debts while rolling out infrastructure such as schools and roads.
“I am glad to report that the hard work is yielding positive results – the macroeconomic fundamentals have seen improvements through improved fiscal and monetary discipline” Akufo-Addo said.
Ghana, a major commodity exporter, got a $920 million credit extension facility from the International Monetary Fund in 2015 to reduce the deficit, public debt an inflation in order to spur growth, following a plunge in oil price that led the country to an economic crisis.
Speaking on the credit extension, President Akufo-Addo said “The important aspect and the cornerstone of our government going forward is to remain committed to fiscal discipline so that never again will we go back to the IMF or any bailout of the sort”.
The West African government saved about $7 billion from reviewing power sector deals signed by his predecessor covering a 13-year contract, and also saved at least $200 million through value-for-money procurement reviews.
As the budget and current account deficits narrow amid lower inflation and falling interest rates, African Development Bank noted that economic growth is projected to accelerate to 8.5% this year and then moderate at 6.2% in 2019.