Ghana sets 9% fiscal deficit, 8% GDP growth in 2013 budget

Ghana is targeting a fiscal deficit of a 9% and gross domestic product (GDP) growth of 8 % by the end of 2013, Finance Minister Seth Terpker announced today March 5, 2013 while reading the country’s 2013 budget in Parliament.

Ghana’s fiscal deficit reached 12.1% of GDP end of 2012 after overshooting the 6.7% target almost a 100%.

Other targets for 2013, the Finance Minister projected are real non-oil GDP growth of 6.5%, average inflation rate of 8.9% as well as end-period inflation of 9%.

The country makes a projection of not-less-than three months of import cover for goods and services.

“It is projected that economic growth will remain strong and inflation is also expected to remain in single-digit in 2013,” Mr Terkper told Parliament.

Fitch in February 2013 downgraded Ghana’s credit outlook from stable to negative after a “severe deterioration” of the country’s fiscal deficit.

But Mr Terkper assured that measures will be taken to protect the credibility of fiscal policies and the deficit target.

By Ekow Quandzie