Fiscal Policy Implementation for the first half of the year has been in line with the performance criteria under the IMF ECF-supported programme, the Bank of Ghana has said.
At the last Monetary Policy Committee meeting on Monday, 27 November 2023, Governor Addison said the targets on the primary fiscal balance on a commitment basis, non-accumulation of external debt payment
arrears, and newly-collateralised debt by central government and public entities were all attained.
Fiscal performance based on the narrow budget, he added, "shows a deficit of 2.9 per cent of GDP for the period January through October 2023, against a target of 5.1 per cent of GDP".
He noted that the pace of growth in monetary aggregates has "significantly slowed", underpinned by "tighter liquidity management". Meanehile, he said reserve money contracted by 2.6 per cent
on a year-on-year basis in October 2023 compared to an increase of 62.7 per cent recorded for the corresponding period in 2022.
"The significant contraction in reserve money was on the
back of strict adherence to zero-financing of the budget and sustained liquidity withdrawal efforts of about GHS44.9 billion (5.3 per cent of GDP, year-to-date)".
"As a result of these, broad money supply (M2+) growth declined to 20.4 percent in October 2023, relative to 45.2 per cent in October 2022".