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23 September 2016

BoG Governor backs gov’t claim of economic turnaround

nashiru-issahakuGovernor of the Bank of Ghana (BoG), Abdul Nashiru Issahaku, has corroborated government’s claim that the economy is turning around.

Addressing the media after chairing the Monetary Policy Committee meeting last week that reviewed the health of the economy, Dr. Issahaku said given previous challenges current developments would pass for a significant turnaround.

“If you look at the [current] trajectory and compare with any metrics about where we are coming from, and compare the numbers to where we are now, you know that there is a turnaround,” he said.

The Governor’s comment follows concerns that rising inflation rate, ballooning public debt and excessive expenditure cast doubts on the Finance Minister, Seth Terkper’s assurance that the economy is on the path to recovery.

Seth Terkper has said government’s tax revenue mobilisation is progressing, suggesting that government’s borrowing spree is temporary.

He said Government was committed to implementing home-grown policies under the three-year IMF programme in a bid to restore macroeconomic stability shore up its depleting coffers.

There were renewed fears of a severely cash-strapped economy after BoG’s summary of Economic and Financial Data revealed last week that the country’s total public debt has hit almost GH¢110 billion as at July this year.

Touching on the local currency, the Governor noted that the Cedi could even appreciate strongly against the dollar on expected inflows from Eurobond and Cocoa Loan Syndication.

Dr. Issahaku is also of the view that the upcoming elections will not derail government’s plans to keep spending in check. Election years have always been characterised by huge public expenditure.

There are fears that the economy could slow down as a result of election-related spending and hike inflation rate figures even further.

 

Source: Myjoyonline.com

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