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Home Reports Budgets

Budget Statement and Economic Policy for 2002

5 years ago
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Considerable progress was made in stabilising the economy in 2001. From a peak of 41.9 per cent in March 2001, the rate of inflation declined to 21.3 per cent by end-December, better than the programme target of 25.0 per cent.

After a sharp depreciation in 2000, the cedi stabilised at around ¢7,300 per U.S. dollar during 2001. Gross international reserves increased from US$264.0 million at end-2000 to a provisional estimate of about US$336.6 million equivalent to 1.5 months of imports, by December 2001.

Provisional estimates indicate that our target of 4.0 per cent real GDP growth was marginally exceeded.

These positive results were achieved through firm financial discipline. Aided by strict control of cash expenditures by Government, the Bank of Ghana succeeded in reducing the rate of expansion of reserve money, thus reducing the excessive monetary expansion that occurred in 2000.

The 2001 targets for the government’s domestic primary balance, the overall budget balance and the net international reserves of the Bank of Ghana, were all achieved.

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