A consistent 8.0 percent growth of the economy is what Ghana requires to realize its vision of becoming a full Middle Income Country (MIC), President John Dramani Mahama stated here on Wednesday.


According to him, the economy is on the path of recovery as it is responding to measures being instituted by government to ensure stability.

The president, who was speaking in a nationwide broadcast interview on state-run Ghana Radio, also pointed out that the over 14 percent unprecedented growth experienced in 2011 was due to the first year of oil production.
Ghana’s economy, which was rated the fastest growing in 2011 when the West African country started producing oil, is now expected to grow just above 3.0 percent, as measures in the country’s deal with the International Monetary Fund (IMF) aims at ensuring fiscal stability.

This follows a consistent fiscal slippage of between 2012 and last year, with an overbearing public sector wage bill partly due to a wage rationalization policy introduced in 2010.

“We have taken some tough decisions, and are beginning to see a turnaround. The second-quarter figures look even better than the first quarter,” Mahama noted.

The president was confident that fiscal consolidation would be sustained as the first half targets had been exceeded, adding that the fiscal target of 7.2 percent for year-end would be achieved.

“We were able to achieve a 7.2 budget deficit in the first half of the year which is better than the 7.5 target that we set in the budget,” Mahama indicated.

After removing fuel and utility subsidies, the Ghanaian government implemented fully the deregulation of pricing in the petroleum sector, and since then fuel prices at the pump have been trending downwards.

With the current stabilization of the local Ghana Cedi currency against the major trading currencies, the president expressed confidence that inflation, which has hit 17.9 percent, will also start falling and help in bringing down interest rates. Enditem.

Source: Xinhua


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