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Nov 14, 2015

Consolidating Progress towards a Brighter Medium Term


Accra, Nov. 13, GNA - The International Monetary Fund’s October 2015 World Economic Outlook (WEO), recorded 2.9 per cent global growth in the first half of 2015, 0.3 percentage point lower than projected in April of this year.

This reflects lower than expected recovery in advanced countries and further slowdown in emerging market economies for the fifth consecutive year.

The declines suggest that medium-term and long-term challenges including low productivity growth since the previous financial crisis; and the current financial sector weakness, low investment, growth realignment in China and the downturn in commodity prices still exist.

Mr Seth Terkper, Minister of Finance and Economic Planning, who disclosed this during the presentation of 2016 Budget Statement and Economic Policy to Parliament in Accra, said Global growth is projected at 3.1 percent for 2015, which is 0.3 of a percentage point, lower than the out-turn in 2014 and 0.3 percentage point below the April 2015 forecast.

He said “In 2016, global growth is expected to strengthen at 3.6 percent reflecting a rebound in economic activity in a number of distressed economies. Advanced economies are expected to grow at 2.2 percent, while developing and emerging economies are projected to grow at 4.5 percent.”

He said Sub-Saharan Africa experienced a robust economic growth of 5.0 percent in 2014, driven by strong investment in mining and infrastructure as well as strong private consumption, especially in low-income countries.

He said that economic growth is, however, expected to decelerate in 2015 to 3.8 percent according to the 2015 October WEO, compared to the 4.5 percent forecasted in July 2015.

The Minister noted the slowdown mainly reflects the impact of declining oil prices on the economies of oil exporting countries, as well as lower demand from China (the largest single trade partner of sub-Saharan Africa), and the impact of Ebola on affected countries. Growth is expected to pick up in 2016 to 4.3 percent. – GNA