The growth projection contained in the Fund’s latest World Economic Outlook reportis lower than the 7.8 percent GDP BMI of Fitch has projected for 2018.
The report is being released ahead of the World Bank/IMF Spring Meetings currently underway in Washington, USA.
The IMF also predicted that GDP growth in Sub-Saharan Africa will increase gradually during 2018–19 to 3.4 percent and 3.7 percent, respectively, as commodity prices rise.
The international lender remains optimistic about global growth prospects, forecasting a 3.9 percent increase in 2018, from 3.8 percent in 2017 but warned that the momentum is likely to be temporary in developed economies.
“Once the cyclical upswing and US fiscal stimulus have run their course, prospects for advanced economies remain subdued, given their slow potential growth.”
However the prospects for emerging markets remain more positive in the medium-term and will remain close to 2018 / 2019 levels due to the rise in commodity prices and an increase in India’s growth, offset by the slowdown in China.
The risks internationally, according to the World Economic Outlook are tilted towards the downside and concerns include the vulnerable financial system, possible inward shift in trade policies, geopolitical tensions and climate shocks.
The IMF urged countries to take advantage of the rise in economic growth levels in the near-term to enact policies and reforms which will strengthen “the potential for higher and more inclusive growth” and to build buffers ahead of the next downturn, including improving financial systems and increasing international cooperation.
Ghana’s economy grew by 8.5 percent in 2017, according to provisional estimates by the Ghana Statistical Service (GSS).
This beat most estimates given by renowned institutions that were predicting GDP growth of between 6.4 and 7.0 percent. In 2016, Ghana’s GDP stood at 3.7 percent.
Non-oil GDP however grew at about 4.9 percent.
Per capita income to GDP stood at Gh?7,110 in 2017, about US$1532. In 2016, the country’s per capita income to GDP was Gh?5,991, about US$1,508.
According to the figures, Industry grew by 16.7 percent in 2017 as against -0.5 percent in 2016, whilst Agriculture grew by 8.4 percent in 2017 compared with 3.0 percent in 2016. Services GDP stood at 4.3 percent in 2017, compared with 5.7 percent in 2016.
Inflation has also been low since the beginning of the year, recording 10.4 percent in March 2018. The lower inflation is largely due to abundant foodstuffs and stable inflation.
By Augustine Amoah