77 percent of businesses are confident in economy - Survey

Seventy-seven percent of some businesses surveyed in Ghana expect Ghana’s economy to grow this year.

An additional 82 percent of businesses also expect better performance in the first half of 2018.

The Institute of Economic Affairs (IEA), in the 2017 Business Confidence Survey report, said the survey focused on the first and second halves of 2017, highlighting the expectations of businesses.

It sampled businesses from three key sectors of the economy, namely agriculture, industry and services.

Also, it indicated that 83 percent of businesses interviewed were optimistic the business environment would improve in the first half of 2018.

The report indicated that the optimism expressed by businesses could be attributed to their expectations on the macroeconomic environment, adding that 49 percent businesses expect exchange rate to be stable; 48 percent businesses expect inflation rate to reduce; 53 percent businesses expect average lending rate to reduce and 77 percent expect the economy to grow.

Overall, 46 percent of businesses interviewed, according to the report, performed better in the second half of 2017 compared to 31 percent recorded in the first half of 2017.

The performance of businesses in both the financial and non-financial sector improved in the second half of 2017, the report said.

“71 percent of businesses surveyed in the financial sector performed better in the second half compared to 58 percent recorded in the first half of 2017,” it said.

Touching on the overall business environment, the report said that 51 percent of businesses indicated that the business environment improved in the second half of 2017 compared to 44.95 percent recorded in the first half.

Initiated in 2014, the IEA Business Confidence Survey seeks to gauge the confidence of Ghanaian businesses, scrutinize the economic situation in Ghana at a given time, as well as forecast short term changes in the business environment.

Its objective is to bring to the attention of policymakers to key obstacles confronting businesses with the aim of reaching consensus on key policy reforms to create an enabling environment for the private sector to thrive.