The country has been faced with a lot of challenges for some time now including high debt levels, depreciating currency, high inflation and power challenges among others.
The challenges pushed the country into a three year program with the International Monetary Fund (IMF) last year.
The program is expected to bring Ghana out of the woods by restoring debt sustainability and macroeconomic stability to foster a return to high growth and job creation, while protecting social spending.
The country is currently in the second year of the program and has so far received positive reviews from the IMF.
The IMF’s deputy Managing Director Min Zhu last week told Citi Business News Ghana’s economy is moving in the right direction.
“Throughout analysis in this contract, and more importantly, we see that the whole economy is moving in the right direction. We expect to see the growth we’re getting back stronger, and we expect to see that inflation will drop by 2 to 3 percent,” “We expect to see that the government will cut the budget deficit by 2 percent and with all that we expect to put the economic growth at 4 to 5 percent,” Mr. Min Zhu said.
Despite the positive reviews the country has received from the IMF, industry players have asserted the country is still saddled with economic challenges and still in trying times.
President John Mahama recently assured Ghanaians of a better economy that will have a positive impact in their pockets after he is given a second term.
President John Mahama who admitted the country was still facing economic challenges admonished Ghanaians to bear with the present challenges in the country because they are sacrifices necessary for Ghana’s brighter future.
“I can understand when people say things are tight. We have spent these last four years investing in bringing the social infrastructure back to scratch and when I win the second term, then we will start putting money in your pocket’.
But addressing the media on the current state of the economy on Tuesday February, 9, 2015, Finance Minister Seth Tekper said the economy has made a turnaround.
‘The country’s fiscal consolidation is bearing fruits, our gap between revenues and expenditures is narrowing.
Our deficit has reduced from 11.5% of GDP in 2012 to a provisional 7.0% of GDP in 2015 while primary balance is expected to be positive in 2016, this is the first positive turn we have had since 2005’.
Using seven indicators including fiscal balance, primary balance, current account balance, real GDP growth and inflation as his yard stick Seth Tekper said improvements in those indicators were an affirmation that the economy has made tremendous improvements and experiencing the turnaround.
Seth Tekper added that despite the challenging global environment, Ghana’s growth remains remarkable.
‘Non-Oil GDP growth is expected to improve significantly in the medium term while start of commercial production in Jubilee, TEN and Sankofa-Gye Nyame Fields will boost economic growth.
Stability in power supply will result in gradual pick-up of manufacturing and other economic activities in 2016.’ He said.