IMF cuts Ghana’s projected growth to 7% for 2013 as economy faces risks

The International Monetary Fund (IMF) today September 18, 2013 said it

expects Ghana's full-year growth to be around 7% for 2013. The

Washington-based Fund cited imbalances in the Ghanaian economy as it

is exposed to short-term risks, after a week assessment by its team in

Accra led by Ms Christina Daseking. Ghana has targeted a gross

domestic product (GDP) growth of 8 % by the end of 2013 on robust

economy, according to the 2013 Budget read by Finance Minister Seth

Terpker on March 5. But the IMF noted that economic growth in Ghana

weakened in the first half of 2013, reflecting energy disruptions and

high real interest rates. "As energy problems have now subsided, the

mission expects full-year growth of about 7%, compared with 8% in

2012," it said in a statement. The IMF added "The main risks to the

economy arise from a large current account deficit—projected to

increase to above 13% of GDP in response to much weaker gold and cocoa

prices and ongoing fiscal pressures." Ghana's fiscal deficit reached

12.1% of GDP end of 2012 after overshooting the 6.7% target almost a

100%. With projected reserves of less than 3 months of imports, the

Fund stated that the economy is exposed to risks from a potentially

deteriorating external environment and global financial market

pressures. According to the IMF's statement, the country's inflation

has risen temporarily above 11%, as a result of the significant fuel

price adjustments earlier in the year. In April 2012, the IMF expected

the Ghanaian economy to grow 7.4% in 2013, according to its World

Economic Outlook (WEO). Meanwhile the Fund believes that Ghana's

medium-term economic prospects remain strong.

By Ekow Quandzie

Kofi Oppong Kyekyeku

I am a Ghanaian Broadcast Journalist/Writer who has an interest in General News, Sports, Entertainment, Health, Lifestyle and many more.

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