The Bank of Ghana is warning that growth may remain below potential levels on account of rising cost of living amid significant uncertainty in the outlook.
The Bank’s Composite Index of Economic Activity (CIEA) has already contracted year-on-year in the third quarter, on the back of weakened consumption, trade, and construction activities. It contracted by 1.2% in September 2022, compared with 11.1% growth, a year earlier.
The main indicators that dragged down the Index were domestic VAT, ports activity, and cement sales.
It disclosed in the Monetary Policy Report that these trends signal that growth may remain below potential levels on account of rising cost of living amid significant uncertainty in the outlook.
“Both business and consumer sentiments continue to soften and remain at low levels. Despite these trends, private sector credit growth, in real terms, remains relatively strong and provides scope for the real sector to continue on the path of sustaining a positive outlook for economic activity”, it stated.
We need steadfast implementation of debt exchange operation - BoG
Meanwhile, the Central Bank says the broad expectation is for steadfast implementation of the debt exchange operation measures to foster confidence, improve the debt-metrics and complement the current monetary policy stance at tackling current inflationary pressures.
The 2023 Budget Statement has committed to reset fiscal policy and firmly place it on the course of fiscal consolidation. New revenue measures and expenditure rationalization measures have also been announced.
“To guarantee debt sustainability over the medium term, a debt exchange operation is proposed to be undertaken to support the consolidation agenda”, the Central Bank mentioned.
The broad expectation is for steadfast implementation of these measures to foster confidence, improve the debt-metrics and complement the current monetary policy stance at tackling current inflationary pressures.
Latest Stories
-
Actress Sola Sobowale debunks drug trafficking and arrests in Saudi Arabia
2 mins -
Zebra on loose after escape in US mountain country
15 mins -
Apple iPhone sales fall in nearly all countries
23 mins -
Bawumia takes campaign tour to Western Region
40 mins -
Ghana and India discuss trade at the fourth JTC meeting
1 hour -
Nkwanta South: MCE kneels to beg chiefs to give peace a chance
1 hour -
NDC hopes to win a majority of votes in Ho Central
1 hour -
Ghana moves up to 50th on World Press Freedom Index
1 hour -
I will make you millionaires – Bawumia assures small-scale miners
2 hours -
Majority caucus requests reconvening of Parliament
2 hours -
Ghana ranks as 4th most stressful country for workers in Sub-Saharan Africa
2 hours -
Today’s front pages: Friday, May 3, 2024
3 hours -
CAFCC: USM Alger file appeal at CAS to contest CAF’s decisions on RS Berkane jersey
3 hours -
Africa’s Outstanding Professional, Engr. Ebenezer Kwadjo Dankyi
4 hours -
‘Only 300 businesses in Ghana meet criteria to participate in AfCFTA’
4 hours