Ghana’s economy to swell to $83.2 billion in value by 2023

The size of Ghana’s economy is projected to swell from $62.8 billion in 2020 to $83.2 billion by the end of 2023.

According to Fitch Solutions, research arm of credit rating agency, Fitch Ratings, the expansion of Ghana’s economy is expected to start this year, with the economy growing by $7.2 billion in monetary terms.

Further growing by $5 billion to reach $75.5 billion in 2022.

The more than $20.4 billion increment in the country’s Gross Domestic Product (GDP) according to Fitch Solutions in its April 2021 West Africa Fiscal Monitor Report will translate into a per capita income of $2,206 dollars from the present per capita income of $2,020 by the end of 2021, reaching $2,677 by the end of 2023.

The expansion of the country’s economy Fitch Solutions further notes, will cement Ghana’s position as the eighth (8th) largest economy on the African Continent.

In its Fiscal Monitor Report, Fitch Solutions further asserts that, Nigeria, Egypt and South Africa will continue to remain the continent’s three (3) biggest economies.

Presently, the economies of Nigeria, Egypt and South Africa are valued at $466 billion, $394 billion and $283 billion respectivel

Ghana’s GDP growth rate for this year is projected to be 5 percent and 6.1 percent in 2022.

Meanwhile, the International Monetary Fund (IMF) has projected Ghana’s total debt stock to hit 86.6 percent in 2025.

According to the IMF, Ghana’s debt stock is expected to continue on an elevated path reaching 81.5 percent this year, 83.2 percent in 2022, and further to 84.8 percent, 86.0 percent and 86.6 percent in 2023, 2024 and 2025 respectively.

The country’s debt stock will however, reduce by 1.1 percentage points in 2026, ending 2026 at 85.5 percent.

The country’s debt projections stated in the Fund’s April 2021 Fiscal Monitor Report, could possibly push the Ghanaian economy into the debt-distress category, given the fact that the country is already at risk of high debt distress.

Currently, Ghana’s total public debt stock stands at Ghs 291.6 billion, approximately 76.1 percent of GDP. Fiscal deficit recorded at the end of 2020 also stood at 11.7 percent excluding costs incurred in the nation’s financial and energy sectors.