Ghana: Gov’t projects 8 & 10% GDP growth for 2011/12

Posted: August 11, 2010 in Economic Reporting
Tags: , , , ,

The Government of Ghana has projected a GDP growth rate of eight and ten per cent for the 2011 and 2012 years respectively, against the backdrop of sound economic policies being pursued by the government.

Vice President of Ghana, John Dramani Mahama

“This current budget has been geared towards pushing up the growth rate, and preliminary data from the Bank of Ghana, indicates a half year GDP growth rate of 7.2 per cent. In that regard, we anticipate GDP growth of above 8 and 10 per cent for 2011 and 2012 respectively,” said Vice President John Dramani Mahama.

He made this observation when he launched 490 Yutong buses at a ceremony in Accra on Tuesday, to enhance the country’s road transport system.

The program was under the theme, ‘An Efficient Transport System for a better Ghana’.

It is a private-public partnership under the auspices of J. A. Plant Pool, Yutong, Stanbic Bank and the Government of Ghana, through the Ministry of Transport.

Ghana’s economy was projected to grow at 4-5% in 2009 by the World Bank after having recorded 6.3% in 2007 and 7.3% in 2008 respectively.

According to Mr. Mahama, the economic stability being enjoyed by the country was a clear manifestation to the government’s ‘Better Ghana’ agenda, and was very optimistic that 2011 and 2012 would be promising, as all indicators attest to that fact that the country was on the threshold of attaining middle income status, ahead of the target year.

“The worst effect of the global financial crisis, and the unrestrained over-expenditure of the 2006-2008 era, has largely been contained. Runaway inflation, rising interest rates, and the sharply eroding currency that characterised the economy when we took over power, have all been brought under control.

“Indeed, the cedi has enjoyed the most stable twelve month period since foreign exchange deregulation was introduced into this country. This has stabilised food prices, especially, in the crop sub-sector, and gives positive indications for achieving food security for Ghana in the near future,” he said, adding, “these are very good prospects, and should put us well on our way to achieving middle income status before the target year.”

He said the important stabilising factor, under the leadership of President Mills, has been the increase in the country’s foreign reserves, from US$ 1.8 billion at the end of 2008, to above US$3.5 billion.

This achievement, coupled with others, according to the Vice President, had created a predictable environment for business planning.

He further anticipated that inflation would drop below 8 per cent by December this year, from the current level of 9.52 per cent.

The Vice President, therefore, thanked the banking sector for taking a cue from the positive economic performance, to reduce their interest rates.

However, in spite of this performance, the Government of Ghana had been criticised by a section of the populace, for not spending.

But, the Vice President thinks otherwise, and argued that the government spent almost 30 per cent above what was spent in 2009.

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