The Director of Research at the Institute of Economic Affairs (IEA) has advised economic managers against premature celebration of recent economic gains.
Despite a notable drop in the inflation rate, Dr. John Kwakye emphasized the fragility, vulnerability, and fickleness of the economy.
On his X platform, he cautioned against making assertions such as having “tamed inflation” or “stabilized the exchange rate.”
Dr. Kwakye’s remarks coincide with President Nana Addo Dankwa Akufo-Addo’s call for enhanced collaboration between the Bank of Ghana (BoG) and the Ministry of Finance to sustain these gains.
The President acknowledged the challenges faced by Ghana’s economy and stressed the need for a collective effort to address them.
President Akufo-Addo commended the partnership between the BoG and the International Monetary Fund (IMF), highlighting the positive outcomes of the $3 billion program.
He stated, “There is clear evidence that inflation is being contained, moving from 54 percent in December 2022 to 26.4 percent in November 2023.”
The President also noted the sustained stability of the exchange rate and praised corporate governance measures implemented by the BoG to fortify the banking sector.
Expressing confidence in the BoG’s role in digitizing the economy, the President emphasized the transformation of the payment system and increased financial inclusion. Despite acknowledging the challenging year for the central bank, he commended its resilience and achievements.
President Akufo-Addo reiterated the necessity for strong partnerships and enhanced policy coordination between the BoG and the Ministry of Finance.
He urged the bank to maintain its focus on executing its mandate while ignoring the distractions from misguided elements.
This development underscores a cautious optimism in Ghana’s economic landscape, with experts urging prudence and collaboration for sustained progress.
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