Ghana economic outlook for 2018

Ghana's economic landscape is shifting towards sustainable growth and fiscal consolidation as the government sets its sights on a bright outlook for 2018. In a recent interview on CNBC Africa, the Grand Chief Executive Officer of the Ghana Investment Promotion Centre shared key insights into the country's economic strategy. With a strong emphasis on fiscal discipline and inclusive growth, Ghana aims to create a stable environment for the private sector to thrive and generate employment opportunities, particularly for the youth. One of the main fiscal targets for Ghana is to reduce the fiscal deficit, which has already seen progress from 9% to 6.5% and further aims to achieve a primary balance surplus of around 2% of GDP. The government is also focused on bringing down inflation to a target band of 8% plus or minus 200 basis points. These measures are part of a broader strategy to promote inclusive growth while maintaining fiscal consolidation in the economy. Looking ahead to GDP projections, Ghana is on track to achieve an estimated growth rate of 7.9% in 2017 and is targeting 6.8% for 2018, with an average of 6.5% expected between 2019 and 2021. The government is also working towards building international reserves equivalent to at least four months of import cover to strengthen economic stability. The Ghana IMF program has played a significant role in guiding the country's economic policies, although the government remains committed to fiscal consolidation with or without external programs. The IMF serves as a benchmark for assessing progress and discipline in the economy, but Ghana's focus on sustainable growth and inclusive development drives its economic agenda. In terms of sector focus, the government is eyeing both the oil and non-oil sectors for growth opportunities. While the oil sector saw a significant boost in GDP due to production, the emphasis remains on creating a conducive environment for a robust private sector that can drive economic expansion and job creation. Priority areas in the upcoming 2018 budget include industrialization, agricultural production, infrastructure development, and strengthening the financial architecture to support industry and infrastructure projects. With plans to construct a substantial network of roads across the country, improve energy stability, and enhance the financial system, Ghana is poised to lay a strong foundation for sustained economic growth in the coming years. The government's vision of 'putting Ghana back to work' encapsulates its commitment to fostering a resilient and inclusive economy that benefits all citizens. Overall, Ghana's economic outlook for 2018 is characterized by a dual focus on sustainable growth and fiscal consolidation, with the aim of creating a conducive environment for private sector development and job creation. By balancing macroeconomic stability with targeted sectoral interventions, Ghana is paving the way for a prosperous future.