Ghana’s GDP growth prediction for the end of 2022 has been cut from an earlier 3.1% to 2. 6% by the Standard Bank African Markets Revealed (AMR) report.
According to the report, the continued lack of external funding would likely slow growth; leading to a reduction in development spending over the following few years. The Monetary Policy Committee (MPC) of the Bank of Ghana has aggressively increased the main policy rate in response to the report’s warning that severe inflationary pressures would depress private consumption spending in the second half of the year.
The MPC is still anticipated to increase the policy rate by 200-300 basis points by December of this year.
The research stated that fiscal consolidation under a proposed IMF plan will further restrain capital goods expenditure; even if the government may obtain external funding in 2023.