‘Business confidence in economy high’

Consumer and Businesses confidence in the Ghanaian economy continue to soar, the Governor of the Bank of Ghana (BoG), Dr Ernest Addison has said.

“Evidence from the business and consumer surveys showed some rebound in confidence and optimism about the performance of the domestic economy,” he said during the press conference of the Monetary Policy Committee of the BoG to announce the new Monetary Policy Rate in Accra yesterday.

The Governor explained that the BoG’s updated Composite Index of Economic Activity (CIEA) also confirmed that consumer confidence in the economy was growing.

He said the CIEA recorded an annual growth rate of 3.1 per cent in November 2018, which was below the 8.3 per cent for the same period of 2017.

Dr Addison said the economy was picking up, which among others, is being influenced by the oil sector, after it performed poorly about four year ago.

“The Monetary Policy Committee observed that the year 2018 ended on a solid note with a more consolidated banking sector as weaker and undercapitalised banks that posed risks to financial stability were removed,” he said.

That, he said, had enhanced the efficiency and profitability of the remaining banks and has restored confidence and resilience in the banking sector, with the banks now better positioned to support private sector-led growth in the Ghanaian economy.

“The clean-up exercise has also protected deposits of over 1.5 million depositors with deposits of GHȻ11.6 billion.  This includes deposits of savings and loans companies, rural and community banks, investment fund managers, pension funds, and life insurance companies,” he said.

Dr Addison pledged that the BoG would work to ensure macroeconomic stability of the Ghanaian economy as the country concluded the Extended Credit Facility Programme with the International Monetary Fund.

“The passage of the Fiscal Responsibility Act and the establishment of the Fiscal Council, the Financial Stability Council, as well as the reconstituted Economic Policy Coordinating Committee should anchor fiscal policy and help entrench the macroeconomic gains achieved over the last two years,” Dr Addison said.

By Kingsley Asare

 

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