BoG Governor expresses optimism on GDP target

In an address at the Bank of Ghana’s End of Year Cocktail, Dr. Ernest Addison, the Governor of the Central Bank, delivered an optimistic outlook on Ghana’s economic performance.

Driven by high-frequency indicators, the economy shows promising signs of surpassing the projected GDP growth rate of 1.5% for the year. The IMF has, however, projected a 1.2% GDP growth rate for end-2023.

Acknowledging the effectiveness of collaborative efforts with the Ministry of Finance, Dr. Addison highlighted the formulation of monetary policies designed to maintain economic stability.

He attributed the positive economic trend to the carefully crafted policies implemented in conjunction with the Finance Ministry.

Dr. Addison also addressed the decline in inflation, attributing the favorable outcome to the policy mix under the IMF-supported PC-PEG program.

From a peak of 54.1% in December 2022, headline inflation has steadily decreased, reaching 35.2% in October 2023 and further dropping to 26.4% in November as of the latest report.

The Governor also emphasized the improved external sector position and the buildup of foreign exchange reserves, providing stability in the foreign exchange market. These developments he noted, reflect positively on the overall economic landscape, signaling resilience and progress.

Turning his attention to the financial sector, Dr. Addison reassured stakeholders that it has remained stable and robust amid various shocks over the past six years.

Prudential data for the year up to October 2023 indicate strong profitability for banks, with the Capital Adequacy Ratio surpassing the revised prudential minimum even after adjustments for regulatory reliefs.

“The evidence is clear that the economy is responding well to the policy initiatives that have been put in place,” he stated.

In conclusion, Dr. Ernest Addison expressed confidence in the efficacy of the implemented policy initiatives, citing clear evidence of the economy responding positively. The Governor’s remarks underscore a sense of optimism for continued economic recovery and stability in Ghana.

Norvan Report