Government targets overall GDP growth rate of 5.8% for 2022

The Minister for Finance says non-oil GDP for 2022 growth has also been revised to 5.9%, down from the 6.7% in the 2021 Budget

The government has set the 2022 gross domestic product (GDP) growth rate at 5.6% up from the 5.1% projected in the 2021 Mid-Year Budget Review 

The government originally projected the GDP growth rate in the 2021 Budget at 5.0%.

Presenting the 2022 Budget Statement and Economic Policy of the government in Parliament Wednesday (17 November), Ken Ofori-Atta, the Minister for Finance said, “Speaker, based on the macroeconomic objectives and the medium-term targets, the following macroeconomic targets are set for 2022: Overall Real GDP growth of 5.8%, non-oil real GDP growth of 5.9%, an End-December inflation rate of 8%, fiscal deficit of 7.4% of GDP, a primary surplus of 0.1% of GDP; and gross international reserves to cover not less than four months of imports.”

Total Revenue and Grants for 2022 is projected to rise to GHC100.5 billion, equivalent to 20.0% of GDP, up from a projected outturn of GHC70.3 billion, equivalent to 16% of GDP for 2021. Domestic Revenue is estimated at GHC99.5 billion and represents an annual growth of 44% over the projected outturn for 2021. 

He added, “Mr Speaker, the resource mobilisation for 2022 is underpinned by revenue policy initiatives. The increase in domestic revenue by 44% is as a result of the impact of a major progressive tax policy, complemented by improvements in tax compliance and reforms in revenue administration that we have outlined in this budget.”

The minister in the 2021 Mid-Year Budget Review presented in Parliament on Thursday (29 July) said, “Over the medium term (2022-2025), real GDP growth is expected to average 5.4%, supported by a ramp-up in the government’s flagship programmes, the implementation of the Ghana CARES/Obaatanpa programme, benefits from the AfCFTA Programme, an enhanced digitalisation drive, an aggressive FDI push, and the pursuance of the Ghana as a regional hub agenda.”

Ofori-Atta added, “Mr Speaker, the originally projected gross international reserves cover of four months of import of goods and services and the end period inflation projection of 8.0%, however, remain unchanged.”

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