Akufo-Addo government stabilised cedi in 2017 – IMANI Report

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Business News of Wednesday, 24 January 2018

Source: classfmonline.com

2018-01-24

Cedi Notes 33According to the report government was able to stabilise the cedi in 2017

The Akufo-Addo government was able to stabilise the cedi in 2017 compared to its performance in 2016, policy think tank, IMANI Ghana, has said.

Assessing the government’s performance for the last one year, the think tank indicated that there were positive signs the Ghanaian economy is picking up, a situation which resulted in the stability of the cedi as well as some positive ratings by three major rating agencies.

The report, which was revealed at a forum attended by key stakeholders including the two main political parties, the NPP and the National Democratic Congress (NDC), government officials and others from civil society groups, said: “The NPP government has promised to build the most business-friendly and people-friendly economy in Africa in order to create jobs and prosperity for all Ghanaians.

“The government sought to achieve its objective by restoring macroeconomic stability; shifting the focus of economic management from taxation to production; managing the economy competently; and making the machinery of government work to deliver the benefits of progress to all Ghanaians. To accomplish this goal, about one hundred and forty-six (146) promises were made concerning the macroeconomy, trade and industry, agriculture, and tourism in the 2016 NPP manifesto.

“These promises are broadly in line with the medium term Coordinated Programme of Economic and Social Development (2017-2024) demonstrating consistency and commitment to their goals.

“In the first year of the NPP administration, reflecting a stabilising macroeconomy, Ghana enjoyed positive credit ratings. Three major rating agencies – Fitch (B/stable), Standard & Poor (B-/positive) and Moody’s (B3/stable) – rated Ghana’s economy as stable in 2017 considering such factors as the exchange rate, public debt and inflation.

“Such positive rating if sustained and enhanced will improve Ghana’s global outlook, making her attract further investments. The Ghana cedi was relatively stable in 2017, compared to the previous year; and to other currencies in the West African sub-region. Between January 2017 and October 2017, the cumulative depreciation of the Ghana Cedi was 4.0% compared to 4.3% during the same period in 2016.

“Though inflation was on a downward path, meeting the 2017 inflation target of 11.6 percent proved elusive as the year closed with an inflation rate of 11.8 percent.”

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