By Kofi Ahovi
The government out-performed its set macroeconomic target for the fiscal year 2011, data from the 2012 budget statement and economic policy of the government has shown.
A real Gross Domestic Product (GDP) growth excluding oil for the 2011 fiscal year was set at 7.0%, while real GDP growth including oil was set at 12.3 %; average inflation was targeted at 8.8%; with an end-period inflation target of 8.5%; fiscal balance of a deficit equivalent to 7.5 %; and gross external reserves equivalent to not less than three months import cover of goods and services.
The country recorded a GDP growth of 13.6% compared to a growth target of 14.4% and the actual growth outturn of 7.7% in 2010. The 2011 provisional GDP growth translates into a real GDP of GH¢27.49 billion and a nominal GDP of GH¢56.28 billion; a significant reduction of fiscal deficit from 6.6% of GDP in 2008 on cash basis of 14.5% of GDP – old series to 2.0% of GDP as at September 2011.
Inflation which was 18.1% at the end of 2008 now stands at 8.56% in October, 2011. There has also been a significant reduction in the yield of the 91-day money market instrument from 24.67% in 2008 to 9.1% in September 2011, making it the lowest recorded money market rate in decades;
Gross International Reserves of US$4.98 billion recorded in October
2011 exceeding 3.0 months of import cover of goods and services compared to reserves of US$2.0 billion at the end of December 2008 which could barely cover 2 months of imports.
The government out-performed its set macroeconomic target for the fiscal year 2011, data from the 2012 budget statement and economic policy of the government has shown.
A real Gross Domestic Product (GDP) growth excluding oil for the 2011 fiscal year was set at 7.0%, while real GDP growth including oil was set at 12.3 %; average inflation was targeted at 8.8%; with an end-period inflation target of 8.5%; fiscal balance of a deficit equivalent to 7.5 %; and gross external reserves equivalent to not less than three months import cover of goods and services.
The country recorded a GDP growth of 13.6% compared to a growth target of 14.4% and the actual growth outturn of 7.7% in 2010. The 2011 provisional GDP growth translates into a real GDP of GH¢27.49 billion and a nominal GDP of GH¢56.28 billion; a significant reduction of fiscal deficit from 6.6% of GDP in 2008 on cash basis of 14.5% of GDP – old series to 2.0% of GDP as at September 2011.
Inflation which was 18.1% at the end of 2008 now stands at 8.56% in October, 2011. There has also been a significant reduction in the yield of the 91-day money market instrument from 24.67% in 2008 to 9.1% in September 2011, making it the lowest recorded money market rate in decades;
Gross International Reserves of US$4.98 billion recorded in October
2011 exceeding 3.0 months of import cover of goods and services compared to reserves of US$2.0 billion at the end of December 2008 which could barely cover 2 months of imports.
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