The Ministry for Finance says the country does not face any imminent external imbalances or reserves shortfall.
According to the Ministry, the country’s reserves, at over five times import cover, is well above its internal target of four months and better than the average over the previous two decades.
Foreign financing of the 2022 Budget, of US$1.5 billion is also bolstered by the balance of SDR’s of approximately US$700 million.
The Ministry was reacting to recent media reports that suggested the country is in debt distress causing “investors to lose patience”.
Economy still robust
The Ministry for Finance says the Ghanaian economy is still robust as seen in its rapid rebound post-COVID-19, showing a healthy gross domestic product (GDP) of 6.6% for the third quarter alone and an average of 5.2% for the first three quarters of 2021.
The Ministry said while the end year growth targets for 2021 had been revised to 4.4%, the high-frequency indicators suggested a continued strong momentum in economic activities.
A statement by the Ministry on Friday (14 January) said the country’s economy remained strong despite the global challenges on the back of the COVID-19 pandemic, especially in emerging markets with risks such as financial stress and sluggish progress on vaccination as recently cited by the World Bank.
The statement also reassured the country’s investors “that Ghana’s fundamentals remain strong as attested to by our growth in December the Ghana Revenue Authority (GRA) exceeding its target in 2021 and our strong reserves position.”
“Ghana will continue to show leadership in this difficult post COVID era to build a sustainable, entrepreneurial nation while ensuring that growth, job creation and fiscal consolidation are not compromised, in line with the President’s vision of a Ghana Beyond Aid.”