Fiscal Consolidation Under Threat

BMI View: We believe that Ghana's budget deficit will get worse before it gets better, owing to an anticipated acceleration in the growth of spending in 2010. We are forecasting a budget deficit of GHS2.8bn (10.4% of GDP) in 2010, which would be a deterioration on the estimated GHS1.5bn (6.2% of GDP) shortfall in 2009. Thereafter, the fiscal accounts should improve rapidly thanks to oil revenues, with a surplus expected by 2013.

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