By Elikem MENSAH
Bank of Ghana (BoG) has projected a 6.6% Gross Domestic Product growth for 2008 against the initially projected 7%, according to the central bank’s economic model.
The model revealed that the end of year inflation will be peak 17% , a figure far higher than the single digit forecast in the 2008 budget.
Government had planned to achieve a real GDP growth of at least 7%, an end of year inflation rate of between 6% and 8%, accumulation of internal reserves to the equivalence of at least three months import cover and an overall budget deficit of 4% of GDP, but global economic disruption caused by high crude oil prices and other factors have derailed these targets.
Year on year inflation is currently pegged at 17.9% but expected to drop marginally. Total merchandise imports for the period amounted to US$7,514.1 million, an annual growth of 31.3%.
Gross international reserves position at the end of September 2008 was US$2,270.2 million. This compares with US$1,811.34 in September 2007 and represents 2.3 months cover of imports of goods and services.
Provisional banking data for the first nine months of 2008 show that revenue growth has been strong in line with budget forecast and the pace to economic activity.
Total revenue and growth for the period January to September 2008 amounted to GH¢3,451.5 million representing 21.1% GDP. Total expenditure excluding externally financed capital expenditure for the period amounted to GH¢4,782.5 million representing 29.4% GDP.
However, borrowing requirement of the narrow fiscal deficit of GH¢686.4 million and a net foreign loan repayment of some GH¢278.9 million were mainly financed from the domestic economy to the tune of GH¢547.6 million representing 3.4% of GDP and GH¢471.8 million of the sovereign bond proceed mainly to cover investment in the energy sector.
Bank of Ghana (BoG) has projected a 6.6% Gross Domestic Product growth for 2008 against the initially projected 7%, according to the central bank’s economic model.
The model revealed that the end of year inflation will be peak 17% , a figure far higher than the single digit forecast in the 2008 budget.
Government had planned to achieve a real GDP growth of at least 7%, an end of year inflation rate of between 6% and 8%, accumulation of internal reserves to the equivalence of at least three months import cover and an overall budget deficit of 4% of GDP, but global economic disruption caused by high crude oil prices and other factors have derailed these targets.
Year on year inflation is currently pegged at 17.9% but expected to drop marginally. Total merchandise imports for the period amounted to US$7,514.1 million, an annual growth of 31.3%.
Gross international reserves position at the end of September 2008 was US$2,270.2 million. This compares with US$1,811.34 in September 2007 and represents 2.3 months cover of imports of goods and services.
Provisional banking data for the first nine months of 2008 show that revenue growth has been strong in line with budget forecast and the pace to economic activity.
Total revenue and growth for the period January to September 2008 amounted to GH¢3,451.5 million representing 21.1% GDP. Total expenditure excluding externally financed capital expenditure for the period amounted to GH¢4,782.5 million representing 29.4% GDP.
However, borrowing requirement of the narrow fiscal deficit of GH¢686.4 million and a net foreign loan repayment of some GH¢278.9 million were mainly financed from the domestic economy to the tune of GH¢547.6 million representing 3.4% of GDP and GH¢471.8 million of the sovereign bond proceed mainly to cover investment in the energy sector.
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