Ghana’s economy is showing positive signs of recovery, with inflation easing and public debt on the decline, according to financial analyst Patrick Baah Abankwa.
Speaking to Kwasi Afriyie on Business Edge on Metro TV, Patrick Abankwa said the country is gradually reducing its reliance on oil and placing more focus on agriculture and the service sector.
“The GDP is doing quite well. We are trying to move away from our reliance on oil, focussing on agriculture and the service sector, which is quite okay,” he said.
Abankwa also highlighted the recent drop in inflation as a significant achievement.
“Just yesterday, we realised that the October inflation is around 8%, which is very, very good looking at where we started from. And also, the target that Bank of Ghana has set for itself, which is also something that we should commend the government for putting in place measures to be within that space,” he noted.
On fiscal management, Abankwa emphasized the importance of discipline in balancing government spending and economic growth.
“The most important for me is fiscal discipline, where we try to have a fiscal balance between our surplus and also being able to grow the economy in all fronts,” he said.
The analyst also pointed out that the debt-to-GDP ratio has reduced, helping to restore some fiscal space and boost investor confidence.
“There has been significant reduction in debt to GDP ratio, due to a number of factors that I’m going to mention very soon. And that, once you’re able to stay within that, restores some degree of fiscal space and also some international investor confidence within the economy as a whole,” Abankwa said.
He further noted that Ghana’s external position has strengthened over the year, with the Cedi performing steadily and international reserves on the rise.
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