In recent months, Ghana’s economy has shown remarkable resilience and stability in the face of challenges. Apexnewsgh reports
The exchange rate, which faced pressure in May and June, has finally stabilized, thanks to the Bank of Ghana’s tight monetary policy stance and improved forex liquidity support. Governor Ernest Addison highlighted that the Ghana cedi depreciated by 24.3% against the US dollar from January to September 25, 2024.
However, the good news is that the depreciation pace slowed down to 7.1% in the second half of the year. The country’s economic outlook is looking up, driven by private and government spending, a resilient services sector, and declining oil prices. Additionally, the anticipated policy easing cycle initiated by major central banks in advanced economies has also supported growth.
Ghana’s domestic economy is on the path to recovery, with a stronger-than-expected GDP outturn for the second quarter of 2024. Key sectors driving growth include sustained activities in the construction sector, increased consumption by households and firms, robust gold and crude oil production driving exports, and banks extending credit to the private sector.
The external payment position has also improved, characterized by a higher trade surplus and strong reserves build-up. This improvement can be attributed to robust gold exports and external financial inflows from the IMF and the World Bank.
The balance of payments is projected to achieve a surplus by the end of the year, driven by increased exports, stronger remittance growth, and lower government external payments. Inflation has eased, with headline inflation declining for five consecutive months by 5.4 percentage points, and core inflation declining sharply by 6.9 percentage points.
The Monetary Policy Committee has responded by lowering the Monetary Policy Rate by 200 basis points to 27.0%, indicating that the disinflation process is on the right track.
Source: Apexnewsgh.com/Ghana/Climate Change/ Ngamegbulam Chidozie Stephen
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