As a result, international reserves fell to $5.6 billion (2.5 months of import) in December 2022 from $9.1 billion (4.2 months of import) a year earlier. Overall, the balance of payments recorded a deficit of 5% of GDP, from a surplus of 1.9% in 2021. However, these efforts were undermined by the government’s extensive use of its overdraft facility with BOG (estimated at 6.7% of GDP in 2022). The Bank of Ghana (BOG) responded by increasing the monetary policy rate from 14.5 to 28 % over the year. In 2022, average CPI inflation was 31.5%, (up from 10% in 2021) and reached 54.1% in December (y-o-y). Inflation accelerated throughout the year. The overall fiscal deficit (on a cash basis) reached 9.9% of GDP against a target of 6.7%. The 2022 fiscal deficit was well above target. Government demand was weakened by lack of access to capital markets and high debt service obligations. High inflation and interest rates depressed private consumption and investment. The agriculture and services sectors experienced slower growth in 2022 than the year before. The slowdown affected mostly the non-extractive sectors, as the recovery in gold exports supported extractives growth. GDP growth is estimated to have slowed to 3.2% in 2022, down from 5.4% in 2021. The success of President Akufo-Addo's second term will depend on his ability through consensus building with the opposition on major legislation (including revenue-mobilizing bills) towards achieving debt sustainability, and reaching an agreement with external creditors on external debt restructuring in order to conclude the IMF program under preparation. President Nana Akufo-Addo’s re-election after the Supreme court dismissed the opposition’s election petition, gave the governing New Patriotic Party a second term. Ghana consistently ranks in the top three African countries for freedom of speech and press. In the past two decades, it has taken major strides towards democracy under a multi-party system, with its independent judiciary winning public trust. Its population is about 29.6 million (2018). ![]() Ghana sits on the Atlantic Ocean and borders Togo, Cote d'Ivoire, and Burkina Faso.
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