Ghana’s budget discipline key to Cedi’s performance
Ghana delivered a strong performance on the budget in the last two years, which attracted significant portfolio investments into the country. The deficit was reduced from 8.7% of gross domestic product in 2016 to 5.9% of GDP in 2017 and further to 3.8% last year, (rebasing may have influenced this) according to latest data release by the Ministry of Finance on 4 March 2019. While the government which came into office at the beginning of 2017 must take credit for this performance, it is also noted that this performance was under the watch of the International Monetary Fund.
The nearly US$1-billion Economic Credit Facility Programme with the Fund came to an end in December so this year marks a fiscal test for the Akufo-Addo government. “We are confident that the government will stay within the deficit target. We expect that the new Fiscal Council, (set up by the President last year for the promotion of sustainable fiscal policies) and the enactment of a law this year capping the deficit shortfall at 5% of GDP in any given year, to underpin the restrain” he said.
has held several managerial roles in leading financial institutions in Ghana and elsewhere and has covered other key markets like London, Cameroun, Cote D’Ivoire, Gambia, Botswana and Sierra Leone. Victor holds an MBA in Marketing.