A deputy governor of the bank of Ghana, Millison Narh has stated that projections in the first quarter of the year indicate the country will experience substantial economic growth in the near future.
According to him, recent reading of headline inflation has shown a decline to 18.5 percent in February from 19.0 percent in January 2016 , underpinned by the non-food inflation, showing the stability experienced in the exchange market.
“Our forecast is that, by the second half of 2017, the inflation numbers are likely to decline towards the medium target of 8 percent, plus or minus two”, he said.
The deputy governor made the forecast at a ceremony held in Accra to mark the 25tth anniversary of NDK Financial Services Limited at the company’s Omanye Aba head office building.
He stated that the decline in the inflation figure is expected to be aided by the continuing fiscal consolidation and the tight monetary policy stance, as well as the favorable development in the current account of the country.
He explained that some macroeconomic indicators recorded a decline in growth rate in recent times due to the twin deficit that saw a budget deficit, and a current account deficit.
“When you have such a situation, it normally has an implication for exchange rate development and that is why for a very long time we had volatility in the exchange rate market, but underpinned by the fiscal consolidation and the tight monetary policy stance we are seeing a gradual rewinding of the situation”, he assured.
He stressed that even though there are some risks that may throw the indicators out of line the future looks great as the country is currently experiencing some level of economic stability.
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By: Lawrence Segbefia /citibusinessnews.com/Ghana