Business News of 2014-08-05

Economy will recover by December

Members of the Presidential Advisory Committee, who have been tasked to find quick-fix solutions to Ghana's ailing economy, are hopeful that the economy will regain stability by the close of 2014.

The committee which includes former Finance Minister Prof Kwasi Botchwey, Governor of the Bank of Ghana, Dr Kofi Wampah, and an Economist and member of the opposition New Patriotic Party, Kwame Mpianim, all gave an assurance that the dire economic challenges facing Ghana would be over by December this year.

Dr Wampah stated: "fruitful discussions" were held on all areas of the economy with the hope of bringing the economy back on a sound footing.”

He said government is taking measures to arrest the free fall of the cedi and warned speculators talking down on the cedi and betting against it to beware, adding that, “they will lose their bet if they continue.”

Mr. Kwame Pianim, an economist, on his part said: “President Mahama's consultations would yield dividends, with the implementation of the Senchi economic forum.”

The cedi has depreciated about 30 per cent this year, the budget is in deficit, prices of goods and services are skyrocketing with a general despondence in the economy.

The situation forced government to hold a three day national economic forum at the end of which the Senchi Accord was adopted with a strategic plan to reviving the economy.

An action plan has been presented to the President John Mahama, leading to the setting up of a presidential Advisory Committee, which had its meeting last week to kick-start the implementation of measures that would speed up economic recovery.

The meeting, apart from analysing policies and strategies that were adopted at the Senchi Economic Forum, also map out strategies that would help in the re- shaping of the Ghanaian economy.

It was attended by Vice President, Paa Kwesi Bekoe Amissah-Arthur, Ministers of State and Economic Experts, who would all be contributing their quota towards reinvigorating the economy in the coming months.

President John Mahama, who briefed the media after a closed door meeting on the first day, said the thrust of the discussions were towards restoring policy credibility among other measures.

He said the provision of stability results and ensuring fiscal stability to bridge the deficit gap, was also paramount and would be discussed at length to implement the Senchi economic forum suggestions for the betterment of all Ghanaians.

He said government was studying the market trend and the Bank of Ghana would soon come out with bolder decisions to ensure stability in the economy and the Cedi.

Source: Business Day
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