\n
The\u00a0Bank of Ghana\u00a0(BoG) Governor, Dr.\u00a0Ernest Addison, delivered an optimistic outlook on the nation\u2019s economic recovery \u2013 stating that barring any unanticipated shocks, the signs of a gradual and consistent rebound in the economy will take shape from next year.<\/p>\n
According to him, recent macroeconomic indicators have provided positive signals \u2013 attributing the turnaround to sound macroeconomic policies, successful domestic debt restructuring and a series of structural reforms<\/p>\n
\u201cLet me assure you that the economy is on a gradual rebound. Growth is improving steadily, inflation is declining and the fiscal and external positions are improving, alongside relative stability in the exchange rate. Absent unanticipated shocks in the outlook, the continued implementation of prudent policies will further strengthen the recovery process and reinforce the disinflationary process,\u201d he explained during his speech at the 2023 Governors Day Annual Bankers\u2019 Dinner hosted by the Chartered Institute of Bankers (CIB).<\/p>\n
The central bank chief attributed this anticipated recovery to the implementation of some policies, specifically pointing out impacts of the Bank\u2019s Domestic Gold Purchase Programme (DGPP) launched in June 2021.<\/p>\n
The Governor said the DGPP\u2019s first leg, known as Gold for Reserves (G4R), exceeded expectations. The bank purchased 17.89 tonnes of gold, equivalent to US$1.14billion \u2013 doubling the central bank\u2019s gold reserves well ahead of the initial target.<\/p>\n
Additionally, the Gold for Oil (G4O) programme under DGPP contributed to a reduction in demand for US dollars by Bulk Oil Distribution Companies (BDCs) and positively influenced the Bank\u2019s cashflow, maintaining stable ex-pump prices and supporting the local currency, he said.<\/p>\n
As a result of these initiatives, the first half of 2023 saw gross domestic product (GDP) growth averaging 3.2 percent \u2013 surpassing earlier forecasts of 1.5 percent. Headline inflation, which peaked at 54.1 percent in December 2022, declined to 35.2 percent in October 2023; demonstrating the effectiveness of implemented policies, he noted.<\/p>\n
Turning attention to the banking industry, Dr. Addison acknowledged the challenges faced in 2022 due to Domestic Debt Exchange Programme (DDEP)-related losses, primarily from significant holdings of Treasury bonds. However, official data at the end of October 2023 showed relative stability in the sector. Total assets increased by 16.7 percent year-on-year to GH\u00a2257.89billion, funded by a 26.6 percent growth in deposits to GH\u00a2199.94billion.<\/p>\n
The profitability of banks remained robust, with an industry post-tax profit of GH\u00a27.10billion, representing a 60.4 percent annual growth. The capital adequacy ratio, adjusted for regulatory reliefs, stood at 13.4 percent in October 2023 \u2013 exceeding the revised prudential minimum of 10 percent. However, the industry\u2019s Non-Performing Loans (NPL) ratio increased to 18.3 percent in October 2023 \u2013 attributed to elevated credit risk associated with the macroeconomic crisis in 2022.<\/p>\n
Praise deserved?<\/p>\n
The Governor once again took the opportunity to defend BoG\u2019s role during the crisis, highlighting its critical support to the economy and the misunderstandings that have arisen.<\/p>\n
He called for public appreciation of the Bank\u2019s resilience, and emphasised the ongoing corrective actions and commitment to sound management, transparent accounting and good governance practices.<\/p>\n
\u201cIt is very clear that only a central bank which has been prudently run, built buffers and is well-positioned can step in to support an economy from collapse. It is therefore most appropriate, I believe, to state that Ghanaians should rather applaud and commend the\u00a0Bank of Ghana\u2019s resilience,\u201d he opined.<\/p>\n
The Bank had come under intense criticism for its financing of government, which resulted in a record loss of some GH\u00a260.8billion last year. This led to negative equity at a colossal GH\u00a255.12billion, culminating in an organised protest against management of the central bank and calls for resignation of its leading figures.<\/p>\n
Dr. Addison emphasised the necessity of policy choices made during the crisis for the economy\u2019s greater good. He reiterated that the losses were primarily a result of the Bank\u2019s role as \u2018loss absorber\u2019 during a period of economic crisis.<\/p>\n
The 50 percent haircut on exposure to government, in the form of holding public debt securities and loans to state-owned institutions, led to GH\u00a253.1billion in impairment charges. This decision, while controversial, was framed by Dr. Addison as a necessary policy choice for the greater good of the economy as he further contextualised the Bank\u2019s role during the crisis; highlighting that its strong policy buffers allowed it to support the economy until conclusion of the International Monetray Fund programme.<\/p>\n
\u201cThe Bank played a critical role to support the economy during the crisis period with distinction. It is very clear the Bank\u2019s role in supporting the economy through this crisis has not been fully understood, and in some cases deliberately misinterpreted. The bank came under severe attack across the media space, culminating in an organised demonstration against the institution,\u201d the Governor narrated.<\/p>\n
The central bank head also used the platform to call for unity and support, recognising the pivotal role played by the\u00a0Bank of Ghana\u00a0in steering the nation through challenging times.<\/p>\n
\u201cThe bank will continue to closely monitor developments and, where need be, take appropriate and decisive actions to address same. Also, the bank will ensure that depositors\u2019 funds remain safe and the financial system remains stable and resilient,\u201d he affirmed.<\/p>\n
Source:\u00a0<\/strong>thebftonline.com<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
The\u00a0Bank of Ghana\u00a0(BoG) Governor, Dr.\u00a0Ernest Addison, delivered an optimistic outlook on the nation\u2019s economic recovery \u2013 stating that barring any unanticipated shocks, the signs of a gradual and consistent rebound in the economy will take shape from next year. According to him, recent macroeconomic indicators have provided positive signals \u2013 attributing the turnaround to sound […]<\/p>\n","protected":false},"author":1,"featured_media":127788,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-127787","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"\n
BoG projects sustained economic rebound in 2024 \u2013 - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BoG projects sustained economic rebound in 2024 \u2013 - Ghanamma.com\" \/>\n<meta property=\"og:description\" content=\"The\u00a0Bank of Ghana\u00a0(BoG) Governor, Dr.\u00a0Ernest Addison, delivered an optimistic outlook on the nation\u2019s economic recovery \u2013 stating that barring any unanticipated shocks, the signs of a gradual and consistent rebound in the economy will take shape from next year. According to him, recent macroeconomic indicators have provided positive signals \u2013 attributing the turnaround to sound […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/\" \/>\n<meta property=\"og:site_name\" content=\"Ghanamma.com\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-05T17:00:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ghanamma.com\/2023\/wp-content\/uploads\/2023\/12\/image-190.png\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"215\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Ghana News\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ghana News\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/\",\"url\":\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/\",\"name\":\"BoG projects sustained economic rebound in 2024 \u2013 - Ghanamma.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2023\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.ghanamma.com\/2023\/wp-content\/uploads\/2023\/12\/image-190.png\",\"datePublished\":\"2023-12-05T17:00:15+00:00\",\"dateModified\":\"2023-12-05T17:00:15+00:00\",\"author\":{\"@id\":\"https:\/\/www.ghanamma.com\/2023\/#\/schema\/person\/6f91dab2e50bbbfe895c93e7e84e7f74\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#primaryimage\",\"url\":\"https:\/\/www.ghanamma.com\/2023\/wp-content\/uploads\/2023\/12\/image-190.png\",\"contentUrl\":\"https:\/\/www.ghanamma.com\/2023\/wp-content\/uploads\/2023\/12\/image-190.png\",\"width\":300,\"height\":215},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.ghanamma.com\/2023\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"BoG projects sustained economic rebound in 2024 \u2013\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ghanamma.com\/2023\/#website\",\"url\":\"https:\/\/www.ghanamma.com\/2023\/\",\"name\":\"Ghanamma.com\",\"description\":\"Ghana mma provides breaking news, top stories in Ghana, Africa, business, entertainment, politics and more.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ghanamma.com\/2023\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.ghanamma.com\/2023\/#\/schema\/person\/6f91dab2e50bbbfe895c93e7e84e7f74\",\"name\":\"Ghana News\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ghanamma.com\/2023\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/22cb97c2b08df229330efb2b8c2645feaae8d3ca3ee434035fbb668b5b82f570?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/22cb97c2b08df229330efb2b8c2645feaae8d3ca3ee434035fbb668b5b82f570?s=96&d=mm&r=g\",\"caption\":\"Ghana News\"},\"sameAs\":[\"https:\/\/www.ghanamma.com\/2023\"],\"url\":\"https:\/\/www.ghanamma.com\/2023\/author\/ghanamma\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"BoG projects sustained economic rebound in 2024 \u2013 - Ghanamma.com","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/","og_locale":"en_US","og_type":"article","og_title":"BoG projects sustained economic rebound in 2024 \u2013 - Ghanamma.com","og_description":"The\u00a0Bank of Ghana\u00a0(BoG) Governor, Dr.\u00a0Ernest Addison, delivered an optimistic outlook on the nation\u2019s economic recovery \u2013 stating that barring any unanticipated shocks, the signs of a gradual and consistent rebound in the economy will take shape from next year. According to him, recent macroeconomic indicators have provided positive signals \u2013 attributing the turnaround to sound […]","og_url":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/","og_site_name":"Ghanamma.com","article_published_time":"2023-12-05T17:00:15+00:00","og_image":[{"width":300,"height":215,"url":"https:\/\/www.ghanamma.com\/2023\/wp-content\/uploads\/2023\/12\/image-190.png","type":"image\/png"}],"author":"Ghana News","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Ghana News","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/","url":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/","name":"BoG projects sustained economic rebound in 2024 \u2013 - Ghanamma.com","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2023\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#primaryimage"},"image":{"@id":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#primaryimage"},"thumbnailUrl":"https:\/\/www.ghanamma.com\/2023\/wp-content\/uploads\/2023\/12\/image-190.png","datePublished":"2023-12-05T17:00:15+00:00","dateModified":"2023-12-05T17:00:15+00:00","author":{"@id":"https:\/\/www.ghanamma.com\/2023\/#\/schema\/person\/6f91dab2e50bbbfe895c93e7e84e7f74"},"breadcrumb":{"@id":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#primaryimage","url":"https:\/\/www.ghanamma.com\/2023\/wp-content\/uploads\/2023\/12\/image-190.png","contentUrl":"https:\/\/www.ghanamma.com\/2023\/wp-content\/uploads\/2023\/12\/image-190.png","width":300,"height":215},{"@type":"BreadcrumbList","@id":"https:\/\/www.ghanamma.com\/2023\/12\/05\/bog-projects-sustained-economic-rebound-in-2024\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.ghanamma.com\/2023\/"},{"@type":"ListItem","position":2,"name":"BoG projects sustained economic rebound in 2024 \u2013"}]},{"@type":"WebSite","@id":"https:\/\/www.ghanamma.com\/2023\/#website","url":"https:\/\/www.ghanamma.com\/2023\/","name":"Ghanamma.com","description":"Ghana mma provides breaking news, top stories in Ghana, Africa, business, entertainment, politics and more.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ghanamma.com\/2023\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.ghanamma.com\/2023\/#\/schema\/person\/6f91dab2e50bbbfe895c93e7e84e7f74","name":"Ghana News","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ghanamma.com\/2023\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/22cb97c2b08df229330efb2b8c2645feaae8d3ca3ee434035fbb668b5b82f570?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/22cb97c2b08df229330efb2b8c2645feaae8d3ca3ee434035fbb668b5b82f570?s=96&d=mm&r=g","caption":"Ghana News"},"sameAs":["https:\/\/www.ghanamma.com\/2023"],"url":"https:\/\/www.ghanamma.com\/2023\/author\/ghanamma\/"}]}},"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/posts\/127787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/comments?post=127787"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/posts\/127787\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/media\/127788"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/media?parent=127787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/categories?post=127787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2023\/wp-json\/wp\/v2\/tags?post=127787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}