Business News of Fri, 27 Jul 201811
Economy growing stronger – BoG
Bank of Ghana Governor Dr Ernest Addison, has said the Ghanaian economy is recording strong growth.
The economy, he explained, grew with a 6.8 per cent Gross Domestic Product (GDP) in the first quarter of 2018, compared with 6.7 per cent in the same period of 2017.
Dr Addison has also assured that the Monetary Policy Committee (MPC) of the BoG will take the appropriate policy measures to promptly address any potential threats to the disinflation path.
At the MPC meeting in Accra on 23 July 2018, he said: “Global inflation has picked up in most advanced economies driven mainly by wage dynamics as labour market conditions tighten and crude oil price increases. Core inflation, however, remains benign but may pick up. Inflation pressures in emerging market economies, on the other hand, are gradually moderating.
“The Ghanaian economy continues to record strong growth with a 6.8 per cent GDP growth in the first quarter of 2018, compared with 6.7 per cent in the same period of 2017. Non-oil growth for the first quarter also picked up strongly to 5.4 per cent, from 4.0 per cent in the comparative period of 2017.
“The growth pickup is evidenced in a stronger rebound by the services sector, which rose by 5.2 per cent, compared with 3.4 per cent in the same period of 2017.
“The Bank’s Composite Index of Economic Activity (CIEA) also showed a strong pickup reflecting increased industrial consumption of electricity, cement sales and exports. The real CIEA recorded an annual growth of 3.2 per cent in May 2018, compared to 2.6 percent in the corresponding period of 2017.”
He added: “Given the circumstances, especially with regards to the global outlook, the Committee decided to maintain the Monetary Policy Rate at 17 per cent while closely monitoring developments in the near-term. The Committee stands ready to take the appropriate policy measures to promptly address any potential threats to the disinflation path”.