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Business News of Wednesday, 9 April 2014


IMF predicts 5% growth rate for Ghana this year

The International Monetary Fund is predicting a 4.8 percent growth rate for Ghana’s economy this year.

The projection is far lower than the 8 percent government is hoping to achieve this year.

This was contained in the fund's World Economic Outlook report released on the sidelines of the on-going spring meetings in Washington D.C.

The prediction by the IMF, if it is anything to go by, could mean that government might have to revise its notes, in terms of the projected tax revenue of little over 20 billion Ghana cedis for this year.

The almost three percent decline, compared to what government is hoping to achieve in growth rate would mean that economic activities might decline by that margin, if the prediction by IMF is that accurate.

A strong economic growth could have also sent some signals to investors that the economy is picking up and that Ghana might be good place to invest.

A strong growth would have possibly resulted in government getting more tax revenues, to support its expenditure in the coming months, especially in the areas of road construction, and paying salaries of public sector workers.

However, with the current energy crisis which has affected most business activities and operations of industries, then the prediction by the IMF, might not be out of place.

The Fund is also projecting that Ghana would end the year with an inflation rate of 13 percent, 4 percent higher of government's target of 9.5 percent, but with the current February rate of 14 percent, the forecast could mean that general price levels of goods and services might be threading downwards in the coming months.