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ACCRA, Oct 28 (Reuters) - Ghana's Finance Ministry revised up its 2020 growth forecast on Wednesday and forecast a rebound to 5.9% next year as the economy recovers from its first contraction in almost four decades due to the coronavirus pandemic.
The West African nation, a major producer of gold, oil and cocoa, saw gross domestic shrink 3.2% in the second quarter after a three-week lockdown in March forced many businesses to close.
But lower prices and a stabilised exchange rate have boosted business optimism and led the ministry to expect growth this year of 1.9% versus an earlier estimate of 0.9%, Finance Minister Ken Ofori-Atta said in an address to parliament.
"Despite the set-backs from the pandemic, we are on track to recover," he said.
The ministry has also revised down its projected fiscal deficit for 2021 to 8.3% from 9.6% due to the anticipated pick-up in economic activity, he said.
(Reporting by Christian Akorlie Writing by Alessandra Prentice Editing by Bate Felix)
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