THE 2018 BUDGET STATEMENT AND ECONOMIC POLICY OF GOVERNMENT

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SECTION ONE: INTRODUCTION
1. Rt. Hon. Speaker, Honourable Members of Parliament, on the authority of His
Excellency the President, Nana Addo Dankwa Akufo-Addo, I beg to move that
this Honourable House approves the Financial Policy of the Government of Ghana
for the year ending 31st December 2018.
2. On the authority of the President, and in accordance with Article 179 of the 1992
Constitution, permit me to present to this august House, the Budget Statement
and Economic Policies of government for 2018.
3. I also submit before this august House The 2017 Annual Report on the Petroleum
Funds, in accordance with Section 48 of the Petroleum Revenue Management
Act, 2011 (Act 815), as amended.
4. Mr. Speaker, this year has been a very busy one for all of us. This is the third
Budget we are presenting in the year. The first one was in March, the second
the mid-year performance review and less than four months down the line we
are also presenting the 2018 Budget. In between this period, we have enjoyed
the cooperation of this house in passing a number of bills to facilitate the
implementation of our agenda for jobs and wealth creation. I wish to on behalf
of the President thank this august house for all the support that has brought us
this far.
5. Mr. Speaker, in March when I presented the Budget I indicated to this house our
commitment to take strategic steps to fix the challenges facing the economy and
restore hope to Ghanaians.
6. Our Asempa budget set in motion key policy priority and flagship projects to
restore and maintain macroeconomic stability, boost revenue streams, promote
private sector led jobs and wealth creation, boost agricultural production and
productivity, quality education, develop leadership skills, job skills and creative
skills entrepreneurship
7. We are happy to note that our policies are yielding results that have brought
back smiles to several Ghanaians who were almost at the point of despair not
knowing where to turn to. It is heart-warming when someone runs up to you to
say thank you for putting money in their pockets just because they did not have
to pay some GH₵2,000.00 for their two children in SHS or when a nurse or
teacher runs up to you with excitement to show you the allowance received
through a text message.
8. Mr. Speaker, we resolved to be fiscally disciplined and respect the limits this
august House set for us within appropriation. We believe that as competent
Theme: “Putting Ghana Back to Work”
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managers of the economy, we have provided leadership, especially with the
management of public funds.
9. Mr. Speaker, I am glad to report we are on course to end the year with the fiscal
deficit of 6.5 percent as approved by the House.
10. In just ten (10) months we are witnessing:
 A stable economy;
 Return to robust growth, with a real GDP growth of 7.8 percent in the first
half of 2017 against 2.7 percent in 2016;
 Renewed confidence in the economy;
 Decline in inflation; end-September inflation of 12.2 percent from 15.4
percent December 2016.
 Increase in credit to the private sector;
 Relative stability in the exchange rate market (cummulative depreciation of
4.42 percent);
 Cut in policy rate to 21 percent from a peak of 26 percent in 2016;
 Normalization of the domestic yield curve; and issuance of the country’s
maiden 15-year bond in April 2017;
 Improved external balances, driven by higher export earnings and lower
imports;
 Improvement in the gross international reserves, with about 4 months of
imports cover;
 Surplus primary balance of 0.3 percent in September 2017 against a deficit
of 1.6 in September 2016;
 Positive rating reviews from all three (3) Rating Agencies: Fitch, B/stable;
Standard & Poor, B-/positive; and Moody’s B3/stable;
 4th successful review of the IMF-ECF program; and
 Positive developments in the oil & gas sector – favorable ITLOS ruling, and
Sankofa achieved 1st oil three months ahead of schedule.
11. Mr. Speaker, to ensure irreversibility of the stability we have achieved, we are
implementing structural measures to tackle some of the long-term structural
issues. They include the:
 Capping of the statutory funds at 25 percent of government tax revenues,
 Operationalization of the Treasury Single Account (TSA) to consolidate all
government funds at the Bank of Ghana,
 Adoption of the competitive tender processes to eliminate wastages,
 tightening of expenditure controls in GIFMIS to minimize inefficiencies and
budget overruns and
 Strict enforcement of the PFM Act, as well as the Public Procurement Act to
ensure efficiency in public procurement.
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12. We issued the energy bond to refinance the energy sector debt to address the
energy sector legacy debts and introduced the ‘Cash Waterfall Mechanism’ to
prevent new debt accumulation.
13. Mr. Speaker, over the past seven (7) months we have diligently followed through
due process to prepare adequately for the implementation of our initiatives, and
I am pleased to report to this august House that after months of intense
preparation we have:
 Rolled out the free SHS to ensure equal opportunities for all;
 Rolled-out the National Digital Addressing System to provide a unique address
for all properties in Ghana;
 Launched the National Identification Scheme; and
 Restored the teachers and nurses training allowances.
14. Mr. Speaker, with regards to our three big initiatives the Infrastructure for
Poverty Eradication Project (IPEP), One District One Factory and the Zongo
Development Fund, to date we have setup the three (3) Development Authorities
and Parliament has also graciously passed the Zongo Development Fund Bill into
an Act. Further to these we have:
 Launched the IPEP; and
 Launched the ‘One District, One Factory’; ‘One Village, One Dam’; and the
Zongo Development Fund.
15. Mr. Speaker, a lot has been done to stabilize the economy, and we remain
committed to sustaining the gains made so far and get Ghana working again. In
the 2017 Budget we sowed the seeds for growth and jobs as this Administration
places high value on improving the wellbeing of Ghanaians.
16. The broad agenda for 2018 and the medium term is to create jobs leading to
prosperity and equal opportunities for all Ghanaians. This is contained in His
Excellency the President’s Coordinated Programme of Economic and Social
Development Policies which has been presented to this august House. This will
be driven by investments in Agriculture and Agribusiness, Strategic
Infrastructure, Human Capital and Entrepreneurship and Innovation
Programmes.
17. Specifically, we will continue, as well as expand the following key policy initiatives
and flagship projects:
 Planting for Food and Jobs
 Stimulus Package for distressed industries
 One District, One Factory
 Zongo Development Fund
 National Entrepreneurship Programme
 Free Senior High School
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 National Identification Scheme
 National School Feeding Programme
18. Mr. Speaker we have prioritized investments in these areas to
 ensure that we establish a fair and inclusive society, which creates life
transforming opportunities for all
 stimulate growth as a means to stabilizing the economy and placing it on the
path of strong and resilient growth.
19. We are confident that these priorities will not only deliver jobs but will improve
good health and wellbeing of Ghanaians, increase agricultural growth and
development, provide decent work through skill and entrepreneurship
development and industrialization as well as increase opportunities for all
through the provision of quality education and health delivery.
20. They could could not have been more opportune because they are also
consistent with the United Nations Sustainable development goals, especially the
goal of eradicating hunger and poverty, Decent Work and Economic Growth,
Industry, Innovation and Infrastructure, Quality Education and Reduced
Inequalities with special emphasis on Gender.
21. Mr. Speaker, as you know H.E the President is a co-chair the UN advocacy group
for the Global Sustainable Development Goals (SDG). This leaves Ghana with a
special responsibility to perform on the SDGs, and take a leading role in the
African Union (AU) to get the continent on board. Although many of the goals
will be achieved with improved policy integration, and the actions of Ghanaian
citizens and civil society, we want to use the budget as our main instrument to
push the process forward. Therefore, this budget places special emphasis on the
SDGs.
22. We are determined to meet the targets set by the world body under the
Sustainable Development Goals and to ensure that no Ghanaian is left behind in
our development process.
23. To achieve this the budget will also set in motion initiatives to deepen good
administrative and economic governance, fight corruption and enhance public
accountability as a means to maintaining a stable, united and safe society.
24. Mr. Speaker, the theme for the 2018 Budget is “from stabilization to growth:
putting Ghana back to work again”. This theme, was carefully chosen to reflect
our own aspiration of igniting an entrepreneurial spirit within every Ghanaian
and motivating them to go out there to work and earn a living and improve their
lives. We plan on providing opportunity for as many Ghanaians as possible to
initiate projects on their own.
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25. Mr. Speaker, with these few introductory remarks my presentation today will
follow this outline:
 I will present a short brief on how the Global economy performed in 2016,
the medium-term outlook and the expected impact on the Ghanaian
economy;
 This will be followed by the Macroeconomic Performance for 2017 against the
target sets;
 I will then present the President’s Macroeconomic Targets for 2018 and the
Medium-Term Targets;
 In addition, I will briefly talk about some key sector deliverables for 2018
under each of our policy goals;
 And then provide you with the key policy initiatives for 2018; and
 Finally conclude with highlights of the key messages in the BudgSECTION TWO: GLOBAL ECONOMIC DEVELOPMENTS AND

OUTLOOK
Growth
26. Mr. Speaker, according to the October 2017 World Economic Outlook (WEO)
recently released by the IMF, global growth has gained further momentum in
2017. Global growth is projected at 3.6 percent at the end of 2017, up from 3.2
percent growth in 2016. The uptick in growth is broad-based, reflecting economic
expansion in all the three global economic blocs—Advanced Economies,
Emerging Markets, and Developing Economies.
27. Mr. Speaker, growth in advanced countries is estimated at 2.2 percent in 2017
compared to an outturn of 1.7 percent in 2016. This reflects robust private
consumption, investment, and external demand in the Euro area and Japan.
Improvements in global trade through hikes in exports and domestic demand
growth will support the forecast. However, the policy direction of the US
administration, the UK’s Brexit saga and the rapid expansion of credit and high
levels of corporate debt in China continue to contribute to global uncertainty,
given that these developments directly involve three of the world’s largest
economies. The 2018 forecast for advanced economies is modest: 2.3 percent
in the US as uncertainty continues to surround the planned fiscal stimulus, 0.7
percent in Japan and 1.5 percent in the UK (down from 1.7 percent in 2017).
However, generally, risks to global growth in the near term are balanced,
although possible trade restrictions in the US, faster than planned unwinding of
US monetary policy, the post-Brexit UK dynamics with the Eurozone, and greater
volatility in global financial markets pose a downside risk.
28. Mr. Speaker, growth rate of emerging markets and developing economies is
forecast to increase from 4.3 percent outturn in 2016 to 4.6 percent in 2017,
4.9 percent in 2018, and about 5 percent over the medium-term. Much of this
surge is coming from China, where growth is expected to peak at 6.5 percent.
The expected sustained recovery in Brazil and Russia will strongly contribute to
this growth.
29. Mr. Speaker, economic growth in Sub-Saharan Africa (SSA) is projected to
increase from 1.4 percent in 2016 to 2.6 percent in 2017, reaching 3.4 percent
in 2018, but with sizeable differences across countries. Beyond the near term,
growth is expected to rise gradually, but barely above population growth as large
consolidation needs weigh on public spending. Although the effects of
idiosyncratic factors in the region’s largest economies and delays in implementing
policy adjustments continue to weigh on the region’s growth, there is scope or
opportunity for policymakers to undertake critical reforms to stave off downside
risks, raise potential output, and improve living standards more broadly. The
African Development Bank’s African Economic Outlook of March 2017, also
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forecasts SSA’s economic growth at 3.4 percent and 4.6 percent in 2017 and
2018, respectively, on account of rising commodity prices, increasing private
demand including in domestic markets, sound macroeconomic policy
management, a generally improving and favourable business environment, and
a more diversified economic structure, particularly towards the services sector
and light manufacturing.
Global Inflation
30. Mr. Speaker, since 2016, Global inflation has generally trended downwards, even
as employment rates and domestic demand have surged in advanced economies.
Core inflation—that is inflation rates excluding fuel and food prices—has leveled
at 1.2 percent in Europe and 1.4 percent in the US. Monetary policy in advanced
economies is expected to remain largely supportive of growth in the short term,
but the pace of monetary policy tightening in the US could increase capital flow
reversals. For advanced economies, inflation is projected to increase from a low
of 0.8 percent in 2017 at 1.7 percent in 2018.
31. Mr. Speaker, inflation in emerging market economies is forecast to peak at 4.4
percent in 2018, marginally above the 2017 estimate of 4.3 percent. This is
driven by stabilising commodity prices, rising productive capacity utilisation in
China, and the strengthening in global final demand, especially for durable
consumer and investment goods. However, risk factors around high equity
values, shocks to energy and commodity prices, and possible policy disruptions
may limit global trade recovery. Inflation in Sub-Saharan Africa is expected to
moderate slightly from 11.3 percent recorded at the end of 2016 to 11.0 percent
at the end of 2017 and further reduce to 9.5 percent by 2018, mainly on account
of anticipated tightening of monetary policy stance and greater exchange rate
stability.
Commodity Prices in World Markets
32. Mr. Speaker, the IMF projects average crude oil prices of US$50.28 per barrel
for 2017 compared to the realised price of US$42.84 per barrel in 2016. Crude
oil prices are projected to dip marginally to US$50.17 per barrel in 2018,
reflecting the unexpectedly-high shale production in the US, relatively high
exports from OPEC countries, and production boost in Nigeria, Libya, and Russia.
The World Bank’s Commodity Markets Outlook (CMO) of October 2017, however,
forecasts a more optimistic price of $56 per barrel for 2018.
33. According to the CMO, Gold prices rose 2 percent in the third quarter of 2017—
reaching US$1,350 per troy oz in early September—on the back of strong
investment demand reflecting a weakening US Dollar and heightened geopolitical
tensions. Gold prices are expected to end 2017 at US$1,250 per troy oz partly
reflecting anticipated US interest rates hikes. Gold prices are projected to decline
further to US$1,238 per troy oz in 2018 and US$1,226 per troy oz in 2019.
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34. Mr. Speaker, cocoa prices have stabilized around US$2,000 per tonne this year,
down from US$2,890 per tonne in 2016, according to the World Bank’s CMO of
October 2017. Provisional figures for the 2017-18 crop season suggests a surplus
of nearly 130,000 metric tons, on the back of strong West African output due to
favorable weather, and increased production in Latin America. Cocoa prices are
forecast to fall nearly 30 percent in 2017 to US$2,050, before increasing 3
percent to US$2,110 in 2018.
DEVELOPMENTS IN THE ECOWAS SUB-REGION
ECOWAS Macroeconomic Convergence in 2016
35. Mr. Speaker, at its 17th Ordinary Session on 19th May, 2015, in Accra, the
ECOWAS Authority of Heads of State and Government adopted a new set of
rationalized macroeconomic convergence criteria. These formed the basis for
assessing macroeconomic convergence, from the beginning of 2015 in all
Member States.
36. Mr. Speaker, performance under the convergence criteria did not improve in
2016 compared to 2015, mainly due to internal and external shocks including
low commodity prices. A summary of the performance of Member States for 2016
and 2015 under the convergence criteria is presented below.
Primary criteria
37. Mr. Speaker, in 2016, three (3) Member States satisfied the criterion for the Ratio
of Budget Deficit (including grants) to GDP (≤3%) as compared to six (6) in
2015. This situation is explained mainly by a more than proportionate increase
in public spending compared to total revenue, which in some economies was as
much as double, and a drop in grant receipts. The inflation criterion of less than
10 percent was satisfied by twelve (12) Member States compared to fourteen
(14) in 2015. The criterion of Central Bank Financing of the budget deficit to a
maximum of 10 percent of the previous year’s tax revenue was met by thirteen
(13) countries in 2016, compared to twelve (12) in 2015. With regards to gross
external reserves, twelve (12) Member States covered at least three (3) months
of their imports in 2016 and 2015.
Secondary criteria
38. Mr. Speaker, public indebtedness, increased in nearly all the Member States in
2016 compared to 2015. That notwithstanding, eleven (11) member states met
the criterion on Debt-to-GDP (≤70%) in both 2015 and 2016.
39. The nominal exchange rate variation for three (3) currencies in relation to the
West African Unit of Account (WAUA) experienced an average variation outside
the ±10 percent band. The currencies in question are Guinea franc, Naira and
Leone which depreciated on average by 16.4 percent, 23.5 percent and 19.1
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percent, respectively. Twelve (12) countries were within the band in 2016 as
compared to thirteen in 2015.
ECOWAS Trade Liberalization Scheme (ETLS)
40. Mr. Speaker, Ghana continues to take advantage of the ECOWAS Trade
Liberalization Scheme (ETLS) which came into force in January 1, 1990, with
provisions for tariff reductions on unprocessed goods, handicraft and industrial
products of community origin, albeit with some challenges. The scheme, among
other things, grants ECOWAS market access to manufactured or processed
products made in the ECOWAS region without the payment of import duties or
equivalent taxes.
41. Over the last two and half decades, most of the goods traded under the ETLS
have been light manufacturing and agro-processed products from mainly four
countries, namely, Ghana, Nigeria, Cote d’Ivoire and Senegal.
42. Mr. Speaker, for the year 2017, 20 companies have been granted approval under
ETLS as seen in the third quarter. It is expected that more approvals will be
granted by the end of December 2017.
43. Mr. Speaker, the implementation of the ETLS has, however, been fraught with
many challenges including ineffective operationalization of the ETLS Protocol by
member states, inadequate sensitization of businesses on the ETLS, low
compliance level, policy incoherence in member states, high number of physical
barriers along the corridors, harassment of traders by some security agencies,
trade controls policy instruments such as bans and quotas, institutional weakness
and lack of political will.
44. Mr. Speaker, to address these challenges, the Task Force on ETLS, which was
set up by the Authority of Heads of State and Government in 2016, paid a 5-day
working visit to Ghana from 24th–28th April, 2017. The Task Force made a
number of recommendations and government is currently reviewing these
recommendations for implementation, where appropriate.
Economic Partnership Agreement (EPA)
45. Mr. Speaker, to date, all twenty-eight (28) Member States of the EU and thirteen
(13) out of sixteen (16) West African countries have signed the West AfricanEuropean
Union Economic Partnership Agreement (WA-EU EPA). The countries
that are yet to sign are Nigeria, The Gambia and Mauritania. To ratify the WAEU
EPA, all the West African countries need to have signed in line with the
modalities as enshrined in the EPA negotiations.
46. Mr. Speaker, Ghana ratified the Ghana-EU Stepping Stone Economic Partnership
Agreement (commonly referred to as the Interim Economic Partnership
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Agreement (iEPA)) in August 2016 to enable Ghanaian exporters to continue to
enjoy duty-free quota-free (DFQF) EU market access and protect the future of
Ghana’s Exports to the EU Market. Cote d’Ivoire also ratified its iEPA in August
2016. Article 2 of Ghana’s iEPA states that the WA-EU EPA will supersede
Ghana’s iEPA anytime the regional EPA is signed and ratified.
47. The iEPA Accompanying Measures Strategy, which was finalised in September
2017, was formulated with extensive consultations from both the public and
private sectors across all the 10 regions of Ghana. It provides the roadmap and
strategic framework for utilising the Economic Partnership Agreement
Development Programme (EPADP) and other resources, to ensure that Ghana
fully maximise the opportunities and meet the challenges of implementing the
EPA. It identifies and prioritises projects and programmes, which would best
enable Ghana to maximise the EPA benefits and mitigate its costs. Noting that
regional integration is a key goal of the EPA, the iEPA Accompanying Measures
Strategy further targets measures aimed at strengthening Ghana’s contribution
to, and gains from, regional economic integration in West Africa.
Implementation of ECOWAS Common External Tariff (CET)
48. Mr. Speaker, out of the fifteen (15) member states in the ECOWAS region,
thirteen (13) member states including Ghana, are currently applying the CET as
at 31st March, 2017. Cape Verde and Sierra Leone are yet to implement the CET.
49. Mr. Speaker, Ghana will continue to play an important role in the adoption and
implementation of the ECOWAS Common External Tariff (CET) which is
considered a major platform for the establishment of Customs Union that will
facilitate free trade and advance greater economic integration within the region.
In line with the ECOWAS CET Regulation that provides transitional relief in the
form of Import Tax Adjustment (ITA), Ghana has applied the ITA measures on
one hundred and six (106) sensitive commodities in order to make them
affordable and also give added protection to some key sectors of the economy.
The Ministry of Finance is currently monitoring and evaluating the impact of the
CET regime on various sectors of the economy.
Presidential Task Force on the ECOWAS Monetary Corporation
Programme
50. Mr. Speaker, at the fourth meeting of the Presidential Task Force on the ECOWAS
Single Currency Program held in October 2017 at Niamey, Republic of Niger. The
Task Force endorsed the recommendations of the Ministerial Committee and took
the following decisions:
 Urge member states to pursue the structural reforms to enable their
economies to be more resilient to exogenous shocks;
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 Urge member states to take necessary measures, including the sustained
attainment of the convergence criteria necessary for the creation of the
ECOWAS single currency by 2020;
 Urge member states to strengthen multilateral surveillance including the use
of international monitoring institutions;
 Ministerial Committee to meet within three months to propose a new
roadmap to accelerate the creation of the single currency by 2020. In this
framework, a gradual approach where a few countries which are ready can
start the monetary union, while other countries can join later; and
51. Mr. Speaker, His Excellency President Nana Addo Dankwa Akufo-Addo will host
and co-chair the next meeting of the Presidential Taskforce in Accra in February,
2018 to assess the status of implementation of these decisions and the next
steps.
Community Development Programme (CDP)
52. Mr. Speaker, the Community Development Programme (CDP) was developed
within a framework for the actualization of the ECOWAS Vision 2020. The
programme seeks to strengthen the coherent implementation of regional
development projects and programmes in West Africa.
53. Following the decision of the Authority of Heads of State and Government to
organize a donor round table for the financing of the CDP, the ECOWAS
Commission selected seven (7) priority projects among the two hundred and
thirty (230) CDP proposed projects, through a participatory process with
stakeholders for implementation.
54. For the next phase, the Commission, in collaboration with the African
Development Bank (AfDB) will be organizing the Donors’ Round Table on the
theme “Mobilizing resources for regional development in West Africa” in
December, 2017 at Abidjan, Cote d’Ivoire.
55. The African Development Bank, the leading donor, will be supported by the
ECOWAS Bank for Investment and Development (EBID), West African
Development Bank (BOAD), and the West Africa Economic and Monetary Union
(WAEMU) Commission to fund the total cost of the seven (7) projects at an
estimated US$23.3 billion through a Public-Private Partnership (PPP) mode of
financing.
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SECTION THREE: MACROECONOMIC PERFORMANCE FOR JANSEPT
2017
56. Mr. Speaker, our prudent management of the economy under the able leadership
of His Excellency Nana Addo Dankwa Akufo-Addo is yielding positive results. All
the macroeconomic indicators are now pointing in the right direction. Provisional
data on the performance of the economy from January-September, 2017 show
that nearly all the macroeconomic indicators are on target. A summary of this
performance is as follows:
 Overall real GDP grew at an estimated 7.8 percent in the first half of 2017
(6.6% in quarter one and 9.0% in quarter two) against 2.7 percent in same
period in 2016. Overall GDP growth is provisionally estimated at 7.9 percent
at the end of 2017, up from the original forecast of 6.3 percent;
 Non-Oil real GDP grew at an estimated 4.0 percent in the first half year of
2017 (4.0% in quarter one and 3.9% in quarter two) compared to 5.9 percent
in the same period in 2016. Non-oil GDP growth is provisionally estimated at
4.8 percent at the end of 2017;
 End-period inflation was 11.6 percent in October, 2017 compared to 15.8
percent at the same period in 2016;
 The overall budget deficit on cash basis was 4.5 percent of GDP in September,
2017 against a target of 4.8 percent of GDP and an outturn of 6.4 percent in
the same period in 2016;
 The primary balance posted a surplus of 0.3 percent of GDP in September,
2017, as targeted and is a significant improvement over a deficit of 1.6
percent realized during the same period in 2016;
 The current account balance registered a deficit estimated at 0.2 percent of
GDP in August, 2017 compared with 2.6 percent in August, 2016; and
 The country’s Gross International Reserves (including petroleum funds and
encumbered assets), which stood at US$6.9 billion by end-September 2017,
could cover 3.9 months of imports com

compared to the US$4.8 billion or 2.5
months import cover recorded in the same period of 2016.
57. Mr. Speaker, we now provide a more detailed account of the performance of the
economy in the Real, Fiscal, Monetary, and External sectors.

REAL SECTOR PERFORMANCE

58. Mr. Speaker, year-on-year real GDP growth for the first quarter of 2017 was 6.6
percent, compared with 4.3 percent recorded for the first quarter of 2016. The
second quarter recorded a growth (year-on-year) of 9.0 percent, compared with
1.1 percent in the corresponding period of 2016. Overall, year-on-year growth
for the first half of 2017 was 7.8 percent, compared with 2.7 percent in the first
half of 2016.
59. Mr. Speaker, the real GDP growth for 2017 is provisionally estimated at 7.9
percent, while non-oil GDP growth is estimated at 4.8 percent. These provisional
growth rates compare favourably with the 2017 Budget projections of 6.3
percent and 4.6 percent for overall and non-oil GDP, respectively. The strong
growth performance in 2017 is due to the larger than planned oil production,
following delayed Jubilee FPSO Turret Remediation Project, which would now
start in 2018. The recent trend in the growth of real GDP is shown in Figure 1.
Figure 1: Annual Real GDP Growth (percent), 2009-2017

60. Mr. Speaker, provisional estimates indicate that the structure of the economy
remains broadly unchanged from recent years, with a continued dominance of
the Services Sector. For 2017, the share of Services in overall output is estimated
at 55.9 percent, a marginal decline from 56.8 percent registered in 2016. The
share of Industry is estimated at 25.6 percent, compared with 24.3 percent in
2016, while that of Agriculture is estimated at 18.5 percent, compared with 18.9
percent recorded in 2016.

61. Mr. Speaker, among the main economic sectors, Industry is estimated to grow
by 17.7 percent at the end of 2017, making it the best performing sector in terms
of growth. This is largely due to an increased production in upstream oil and gas.
Agriculture is expected to grow by 4.3 percent, while the Services Sector is
projected to grow by 4.7 percent.
Agriculture
62. Mr. Speaker, growth in Agriculture is estimated to be higher than earlier
projected. The growth is broad-based, reflecting positive performances in all
subsectors. The Crops subsector performed strongly, growing by 4.3 percent in
2017, as shown in Table 1. This is in spite of the challenges posed by earlier
reports of the fall army worm invasion. Cocoa is estimated to grow by 3.0
percent, which will be a sharp reversal from the contractions registered in 2015
and 2016. Forestry and Logging is also expected to register an improved
performance in 2017 with a projected growth of 3.9 percent, compared to the
2.5 percent recorded in 2016