REVIEW OF THE GOVERNMENT OF GHANA’S 2023 MID-YEAR BUDGET AND FISCAL POLICY DIRECTION IN THE FACE OF THE CURRENT FISCAL AND MACROECONOMIC CRISES
October 27, 2023
In mid-November, the government tabled the 2024 budget statement within the context of the three-year IMF program that Ghana formally adopted in May 2023, which seeks to address the present fiscal and macroeconomic crises. Since the program’s adoption, macroeconomic conditions have seen some improvement, with year-on-year inflation declining to 35.2% in October 2023 after peaking at 54.1% in December 2022.
The volatility of the cedi depreciation against foreign currencies has also eased, while some calm has returned to the financial sector after the government completed its domestic debt restructuring exercise. Nevertheless, the economy is not out of the woods, as the macroeconomic environment is far from stable given the still-high inflation rate of 35.2%, which is …