Global growth and prospects continue to deteriorate quickly, both foradvanced economies and emerging markets, although the slowdown was ledby the mature economies. IMF now estimates that global growth be 4 percent in both 2011 and 2012.

Highlights of Budgetary Development Narrow Coverage, January-September 2011 Provisional banking data on the execution of the 2011 budget show that by the third-quarter of2011: — Total revenue and grants increased by 46.5 per cent to GH¢7,441.0 million (13.9% of GDP),compared to the corresponding period in 2010. — The level of government spending increased by 34.1 per cent to GH¢8,728.8 million (16.3%of GDP) compared with the corresponding period in 2010. — Consequently, fiscal operations resulted in a narrow budget deficit equivalent to 2.4 per centof GDP compared with 3.1 per cent of GDP recorded over a similar period the previous year. — The primary balance recorded a deficit of 0.4 per cent of GDP; against the deficit of 1.3 percent of GDP recorded in the corresponding period last year. — The narrow budget deficit of GH¢1,287.8 million (2.4% of GDP) together with a foreign loanrepayment of GH¢42 million, resulted in a financing gap of GH¢1,329.8 million. This gap was financed from the issuance of domestic bonds and bills.

A review of developments in the global financial system identified increased global financial risks culminating from the Greece debt crisis, the downgrade of some banks in Europe and the lowered sovereign rating of the United States.

The Ghanaian economy has been growing steadily in spite of the uncertain growth prospects in the global economy. Developments in the real sector indicate strong growth in economic activities in July 2011, indicating that the domestic economy continues to show signs of improvement amidst strong macroeconomic fundamentals. Indicators, such as income and corporate tax collections, workers contribution to SSNIT, cement production and retail sales, registered significant growths during the first seven months of 2011 coupled with improved labour market conditions during the period under review.