Source: newsthemegh.com
According to S&P Global Market Intelligence’s economic director, Andrew Harker, Ghana’s economy is shakily going in the right direction.
He claims that the most recent poll by the international rating agency on Ghana shows that the country’s private sector recovery persisted into the second quarter of the year, which he claims is a catalyst for economic growth.
Midway through the second quarter, the most recent PMI data indicated that the rebound in Ghana’s private sector was still going strong. According to Andrew Harker, Economics Director at S&P Global Market Intelligence, the pricing indices from the poll “are consistent with a sustained slowdown in inflation, which is acting as the catalyst for the recovery and aiding firms in securing greater volumes of new business.”
Even though there is still work to be done before business circumstances are more favorable, Harker continued, “the picture in May was one of an economy moving hesitantly in the right direction.
The S&P Global Ghana report, which was released here on Monday, claims that a further easing of inflationary pressures supported demand throughout Ghana’s private sector in May.
Stronger output growth in the West African nation, as well as new orders and purchasing activity, were flagged, according to the worldwide standard rating agency, and the business outlook improved.
The PMI survey in May focused heavily on the beneficial effects of easing pricing pressures on consumer demand and broader private sector activity.
The S&P Global Purchasing Manager’s Index remained constant in May at 51.3, indicating that business conditions in the nation have improved for the fourth consecutive month.
Midway through the second quarter, businesses continued to raise their selling prices, but the rate of inflation slowed for the sixth month in a row from the series record set in November of last year, and it was the lowest in more than two years.
Additionally, the global rating agency noted that the weaker increase in selling prices was consistent with the picture seen for input costs, with purchase prices and staff costs rising at the softer rates in 30 and four months, respectively.
After reaching a more than two-decade high of 54.1 percent in December, Ghana’s annual inflation rate dropped for the fourth consecutive month to 41.2 percent in April.
A 36-month Extended Credit Facility (ECF) for Ghana with an SDR 2.242 billion (about 3 billion US dollars) commitment was authorized by the IMF Executive Board last month. This choice will allow for an immediate disbursement of SDR 451.4 million, or almost US$600 million.
The government’s Post-COVID-19 Program for Economic Growth (PC-PEG), which aims to rebuild macroeconomic stability and debt sustainability and includes extensive reforms to build resilience and lay the groundwork for stronger and more inclusive growth, serves as the foundation for the authorities’ economic program, which is supported by the ECF arrangement.
Recently, Ghana’s President Nana Addo Dankwa Akufo-Addo stated that the IMF’s assistance was intended to help the nation’s economy flourish again.