Macro-economic Context 2023 Pre-Budget Survey Report
Snapshot of key findings
1. Economic Factors: Most business leaders indicated that economic factors such as inflation, cedi depreciation, slow GDP growth rate, and rising interest rates have had a significant impact on their operations. 2. On IMF Programme: Industry leaders are confident that the IMF program will help restore macroeconomic stability. Some respondents suggested that the program should emphasise debt sustainability while also promoting inclusive and long-term growth. 3. On Illegal Mining: 52.9% of the respondents affirmed that illegal mining has affected their business activities. Among those affected by ‘galamsey’, water supply was deemed as the main area impacted by the activities of illegal mining.
2023 Pre Budget Survey Report
The Ghanaian economy continues to respond to the impacts and shocks from COVID-19, amidst geopolitical instability, heightened macroeconomic pressures, and a looming global recession, which have all threatened the consistent gains made by the government towards achieving its SDG 2030 Agenda.
Ghana’s economy had experienced a rebound in 2021 following the adverse impact of the COVID-19 pandemic. The expectations at the beginning of 2022 was that the economy would consolidate the gains made in 2021, albeit the medium
term impact of the pandemic was still expected to be felt. As a corollary to this, the Ministry of Finance (MoF) had targeted a 5.8% growth in real GDP for 2022, representing a 0.4% increment in actual growth in 2021.
Provisional estimates from the Ghana Statistical Service revealed that the real GDP growth in the second quarter of 2022 was 4.8% as compared to 4.2% same period 2021. In the mid-year review report, the MoF disclosed that real GDP growth in 2022 is expected to contract to 3.7%. Rising energy prices and other externalities including Russian-Ukraine war have altered the growth pattern of the global economy in 2022. From an original prediction of 4.4%, the IMF has revised growth in global economy to 3.2%. The strong performance of the US currency has also resulted in depreciation of the local currency. While concern over the growing levels of public debt lingers, the inflation rate has been on an upward trajectory. These occurrences have heightened uncertainty in the Ghanaian business environment.
