One of Ghana’s key donors, the European Union (EU) says it is confident measures being implemented by government will put the economy on a strong footing in the coming months.
The EU's optimism is in reaction to recent assessment of the country’s economic situation by international rating agencies and financial institutions, like Moody's and Fitch.
Most of these assessment have also pointed to a bleak outlook for the economy.
According to the rating agencies, because of next year’s general elections the country is likely is overshoot its spending targets and pile up more debts.
Fitch’s latest assessment kept Ghana's credit ratings at ‘B’ but with a negative outlook.
However, head of the EU delegation to Ghana, William Hana, told Joy Business the EU would not have released previously frozen funds to Ghana if they were not satisfied with measures being implemented by government.
“The course that has been set out [by government] is one which we support. It is a course of macroeconomic adjustments. The IMF has given its backing, we have also given our backing and dispensed our assistance and we think it is the right way forward,” William Hana said.
He said despite the EU’s confidence in the economy they would be watching key macroeconomic indicators like inflation and budget deficits.
William Hana said generally the EU is hopeful about the economy bouncing back but they remain cautious.
“There are many challenges facing Ghana, facing West Africa, facing Europe at the moment. So the economic situation in the world is not great but given that context we think that the measures that Ghana is taking are the right ones”, he said.