Ghana’s Economic Outlook for 2023: A Year of Opportunities
“The best way to predict the future is to create it.” – Peter Drucker.
As we commence 2023, it’s natural to have some questions and concerns about what the future holds. After all, the past year has been a challenging one, with many unexpected twists and turns. But rather than simply waiting to see what happens, we can choose to actively shape our own future by taking positive actions that will help to create a better tomorrow.
And if you’re a Ghanaian, there are plenty of reasons to be hopeful about what the future holds. According to the African Development Bank’s African Economic Outlook report, Ghana is expected to have one of the fastest growing economies on the continent in the coming years. With a prediction of a GDP growth of 5.1% in 2023, Ghana is outpacing the Africa average of 4.1%.
This growth is expected to be driven by a number of factors, including the government’s COVID-19 Alleviation and Revitalisation of Enterprises Support Program and its 2023 budget, which aims to increase domestic revenue and reduce the country’s dependence on borrowing. The budget will also increase allocations to the Livelihood werment Against Poverty (LEAP) payment per beneficiary household, which will help to lift more people out of poverty and boost the overall prosperity of the country.
In addition to these initiatives, the government is also taking steps to reduce spending in order to improve the country’s fiscal position. For example, fuel allocation to political appointees and their heads will be cut by 50%, the use of large engine vehicles within the city will be banned, and the purchase of vehicles will be limited to locally assembled ones. These measures will help to reduce unnecessary expenditure and allow the government to redirect funds towards more productive uses.
There are also a number of specific developments taking place in the private sector that could contribute to Ghana’s economic success in 2023. For example, the Jospong Group of Companies has entered into a partnership with a major rice producing company in Thailand to develop an integrated rice farming project in Ghana. If this project is successful, it could help to end rice importation into the country, which would be a major economic win for Ghana.
Another major development to watch out for in 2023 is the expected arrival of the first gold-for-oil shipments, which will eliminate the need for the country to spend $400m per month on fuel imports. This will not only save Ghana a significant amount of money, but it will also reduce the country’s reliance on foreign sources of fuel, which will be a major boost to the economy.
Additionally, the Tema Oil Refinery is expected to resume operations in 2023, which could lead to a drop in fuel prices plus an expected reduction of 30% from the international market. This will be welcome news to consumers, who have had to contend with high fuel prices in recent times.
In addition to these developments, it’s worth noting that Fitch Solutions is predicting a stronger cedi against the major foreign currencies in 2023. According to its latest analysis of Ghana’s 2023 Economic Outlook, it said the likely programme from the International Monetary Fund (IMF) signals to investors that the government is committed to fiscal consolidation that will turn around the country’s economic predicament.
Overall, there are many good reasons for Ghanaians to be hopeful about their country’s economic prospects in 2023. With a growing GDP, a commitment to fiscal consolidation, and a number of specific initiatives and developments taking place in both the public and private sectors, there is much to be optimistic about.
That being said, it’s important to recognize that achieving economic growth and prosperity doesn’t happen automatically. It requires hard work, determination, and a willingness to take calculated risks and make the necessary investments in order to create a better future.
In other words, while there are certainly a number of positive developments on the horizon that suggest Ghana is well-positioned for economic growth in the coming years, it’s up to all of us – government officials, business leaders, and ordinary citizens – to work together and do our part to make sure that this growth becomes a reality.
So let’s embrace the future with hope and determination, and work together to create a brighter tomorrow for ourselves and for our country. Whether it’s through supporting small businesses, investing in education and skills development, or simply being good citizens and doing our part to contribute to the common good, there are many ways that we can all play a role in helping to create a more prosperous future for Ghana.
Afehyiapa to all of us. May God bless Ghana and all those who wish her well.
Citizen Akoto
