President Akuffo Addo in his 18th Nation Address, said Ghana’s economy is recovering faster from the global pandemic than initially anticipated.
“On the economic front, according to the Bank of Ghana, the Ghanaian economy is recovering faster than initially anticipated. Consumer confidence is bouncing back strongly, and is today above pre-lockdown levels,” Akuffo Addo said.
“Business confidence has also increased, reflecting the improving macroeconomic conditions, stability in the exchange rate, lower input prices, moderation in lending rates, and positive industry prospects. Consumer spending, industrial consumption of electricity, and construction activities have all reached pre-lockdown levels, whilst tourist arrivals and port harbour activity are gradually edging upwards,” he further added.
Ghana’s economy recovering – The indicators
Despite Ghana’s economy contracting by 3.2% in the second quarter of the year, the Bank of Ghana says the economy is on a recovery path.
After the Monetary Policy Committee met to review the economic health of the country, Dr. Ernest Addison, the Bank of Ghana Governor said
“High-frequency data available to the Bank of Ghana show some green shoots of a rebound in economic activity. From the Bank of Ghana’s surveys in August, consumer confidence is bouncing back strongly and is currently above pre-lockdown levels.”
In the past weeks, Dr. Ernest Addison made it known that consumers were responding positively to the easing of restrictions,
“Consumers seem to be responding to the gradual lifting of restrictions—providing some scope for meaningful economic activities,” he said.
“About 95 percent of businesses surveyed showed strong optimism, reflecting the improving macroeconomic conditions, stability in the exchange rate, lower input prices, moderation in lending rates, and positive industry prospects,” he further added.
With the government’s intervention of the Coronavirus Alleviation Programme which saw a steady roll-out of one-billion Ghana Cedi stimulus package to households and businesses, particularly small and medium scale enterprises, consumer confidence is strongly reviving.
Headline inflation, which edged up sharply to 11.4% in July 2020, began to show a decline, which now stands at 10.5%, thanks to declining food prices.
Also, The central bank’s Composite Index of Economic Activity (CIEA) recorded a 3.6% recovery for July 2020, compared with a contraction of 10.6% recorded in May.
These indicators may be considered an impressive feat given the impact of the coronavirus.
Akuffo Addo’ caution
Despite the improvement in the economy and lower infection rate, Akuffo Addo urged Ghanaians to maintain strict adherence to COVID-19 safety protocols.
“So, I urge all of you, my fellow Ghanaians, to continue to comply with the strict hygiene, mask-wearing and social distancing protocols that have become part of our daily routines. This is the surest way by which we can defeat the virus, and avoid a second wave of infections.”