His Excellency, Nana Addo Dankwa Akufo-Addo, has disclosed that the Ghanaian economy is on the trajectory to full recovery.
Making his opening remarks at the two-day annual presidential business summit in Accra, President Akufo-Addo revealed that the Ghanaian economy has recently experienced some acute growth in its foreign direct investments.
Also, he noted that favourable terms of foreign exchange, inflation, among others have had a positive impact on the growth of the economy.
“Low inflation rate, stable currency, strong reserve position in FDI flows are clear indications of our collective desire to restore the Ghanaian economy onto a path of sustained stability and growth.Nana Addo Dankwa Akufo-Addo
These economic assessments with its associated predictions by His Excellency, comes on the back of the country’s FDI position as disclosed by the Ghana Investment Promotion Centre (GIPC) and statistical macroeconomic findings from the Ghana Statistical Services (GSS).
The President speaking at the summit further opined that his “administration will continue to deepen engagement with the private sector to ensure the local economy remains stronger”.
The Chief Executive Officer of the GIPC, Mr. Yofi Grant, explained that the Ghanaian economy last year witnessed a stunning performance with total FDI inflows amounting to some US$2.6 billion.
With high expectations on a possible influx of investments, 279 investor funded-projects were registered with GIPC within the year.
These projects which comprise of “129 newly registered projects, 131 upstream developments and 19 free zones activities, have been distributed across eight (8) administrative regions in Ghana”.
Additionally, in the first half of 2021, a total of 122 projects (94 new projects and 28 upstream existing projects) worth US$829 million have been brought in through foreign direct investments, GIPC disclosed.
Ghana’s economic turnaround
According to Mr. Grant, the United Kingdom, the Peoples Republic of China, Australia, Netherlands, and South Africa have distinguished themselves as major sources of inward investment to the Ghanaian economy
Furthermore, Mr. Grant has made predictions of the possibility of the Ghanaian economy receiving about US$3 billion worth of FDIs by the end of December 2021.
Also, considering the Ghanaian economy’s level of inflation, Professor Samuel Kobina Annim, the Government Statistician quite recently announced that “the Year-on-year inflation rate for August stood at 9.7 per cent compared to 9.0 per cent in July”.
Additionally, the “month-on month inflation between July 2021 and August 2021 was 0.3 per cent”.
Prof. Annim, while speaking at a press briefing disclosed that “alcoholic beverages were the dominant drivers for the higher rate of inflation in August 2021”.
Food contributed more than half the overall level of inflation. When combined with housing, they form more than two-thirds, further including transport forms more than four-fifths of total inflation.
In the meantime, the country’s foreign exchange position has remained relatively stable over time. Data from the Bank of Ghana revealed the cedis’ position against some major trading currencies.
The cedi for instance experienced some levels of appreciation against the dollar within the first quarter of 2021 but has been witnessing some depreciation recently.