Economist and Statistician, Professor Eric Osei-Assibey has opined that the fiscal outlook of the local economy will reduce to about 6.6 percent in the coming months of the year 2023.
He explains that this forecast could be achieved based on government’s fiscal consolidation measures put in place as it seeks a $3 billion IMF bailout by May 2023.
Earlier, the International Monetary Fund had predicted that the fiscal outlook of the country will be pegged at 7.3 percent with Fitch Solution also pegging it at 6.6 percent.
Speaking at the DBG/GAB Ghana’s Medium-Term Outlook presentation in Accra, under the theme: Ghana’s Medium-Term Outlook; Navigating through Economic Uncertainties amid an IMF Program, Prof. Eric Osei-Assibey expressed optimism that government will in the coming days reduce its expenditure drastically to maintain a positive economic outlook.
“The projection is that the fiscal outlook looks positive. There is going to be an improvement in the fiscal deficit which stood at about 10.4%. As of last year, 2020, it was 11.2%. This is going to reduce to about 6.6%,” he said.
“What explains that is because of the front-loaded fiscal consolidation. We expect revenue performance to be good because of the new taxes bills that have been passed. We expect significant expenditure cut and government interest payment obligation will reduce for both domestic and external,” he added