Fiscal PolicyGhanaInsightsMacroeconomic update

28 November 2022

Ghana’s FY2023 Budget : In a Pickle

In brief

  • The implementation of Ghana’s 2022 budget faced significant headwinds from both weak revenue performance and lax expenditure management


  • The finance minister, Ken Ofori-Atta, confirmed a debt exchange programme as the preferred form of debt restructuring in collaboration with relevant stakeholders including the Ghanaian public, investor community, and development partners


  • Our assessment of the 2023 budget leaves us with little conviction about austerity without an IMF programme. Basically, the Ghanaian economy could be in a pickle, if the government fails to secure financial guarantees from its creditors to pave way for the much-anticipated IMF programme


  • Based on the expected impact of the new taxes on private sector activity, we are broadly aligned with the government’s outlook on key macroeconomic indicators for FY2023


  • The bears could remain rampant on the stock market while debt restructuring should force a downward shift in the Treasury yield curve