The latest positive staff-level review of Ghana’s economy will account for something, as economist Professor Patrick Asuming believes it could soon translate into fresh investor confidence.
The economist says the IMF team’s fifth staff-level review, filled with positive developments, has sparked renewed optimism about Ghana’s economic outlook.
Speaking on the sidelines of discussions surrounding the IMF and World Bank annual meetings, Prof. Asuming said the latest IMF staff-level review of Ghana’s economy paints a promising picture that could reignite both domestic and foreign investor interest.
He confirmed the authenticity of the staff review that, even prior to the fifth review, confidence has been improving, at least from the domestic front, based on the data produced periodically by the Bank of Ghana.
“The confidence has been improving at least from the domestic front. When you look at the economic data that BOG has been releasing, the summary of economic and financial data, you do see the improvement in consumer confidence and business confidence. That’s primarily domestic,” he noted in an interview monitored by The High Street Journal.
He noted that while the recovery has been gradual, Ghana is beginning to rebuild trust in its economic direction after a turbulent period marked by high inflation, currency depreciation, and debt challenges.
According to him, the IMF’s latest assessment, which confirmed progress under Ghana’s bailout program sends a strong signal to the international community that Ghana is turning a corner.
This new positive review, he believes, will be one of Ghana’s best-selling points at the IMF and the World Bank meetings to attract investors in the country to fast-track the economic reset and recovery.
“If you read what the recent release at the IMF, after the staff-level agreement, the statement that came with it, it is full of positive news about the direction of the economy. So I think investors out there will look and know that yes, we are coming from a very bad place, but we are headed in the right direction. So in that sense, I think that should bring some confidence,” he remarked.
He believes that this renewed confidence, backed by improving macroeconomic indicators, could help Ghana attract more foreign direct investment in the months following the IMF/World Bank meetings.
Already, the cedi has shown relative stability, inflation is on a downward path, and the fiscal discipline demanded by the IMF program appears to be firm, reducing public debt significantly.
Analysts maintain that the fifth staff-level review will serve as an assurance that Ghana remains committed to reform and fiscal responsibility, which are key ingredients for sustainable growth.
