President John Dramani Mahama says Ghana's economy is finally beginning to turn the corner, pointing to signs of recovery such as the strengthening of the cedi and a slight drop in the prices of goods and services.
Addressing a durbar of chiefs and people in Wa in the Upper West Region, the President outlined how his government's fiscal discipline is paying off, just months after a tough budget was passed in Parliament. "Since taking over the reins of government, our focus has been on stabilising the economy," he said. "We therefore presented to Parliament in March this year a budget which was aimed at severely trimming expenditure and channelling saved revenue into priority programmes as promised in our manifesto." The President noted that the country's belt-tightening measures were not in vain. "I am happy to report to you that our efforts to stabilise the economy have begun to yield results and it is evident in the improved performance of our local currency and also a gradual reduction of prices of goods and services in the market." Mahama's remarks come amid reports that the Ghanaian cedi has appreciated modestly against major foreign currencies in recent weeks.
According to the Bank of Ghana's May update, the cedi has gained about 3.4% against the US dollar, following months of sustained depreciation.
The central bank attributes the rebound to improved investor confidence, increased forex inflows from cocoa syndication, and reduced demand pressure, as well as tighter fiscal policies implemented under the current administration.
