Despite the Ghanaian economy recording a contraction of 3.2% in the second quarter of 2020, the Governor of the Bank of Ghana has said Ghana's economy is on a steady rebound, with many indicators moving towards pre-pandemic levels.
According to Dr. Ernest Addison, surveys conducted by the Central bank on consumer confidence indicate that economic activity had started picking up in some hitherto dormant areas.
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He said "Business confidence has also improved although the index remained below pre-lockdown levels. Our latest high-frequency economic indicators, such as consumer spending, industrial consumption of electricity revitalise businesses and cushion households will have to be defined to scale and there should be no expectation that these should become permanent obligations of government."
Dr. Addison said a wide fiscal gap raised important financing issues, stressing that its financing should not be by recourse to central bank funds, as doing that would weaken the ability to serve as the anchor of monetary and exchange rate stability.
He stated that the leading indicators available to the BoG point to economic recovery.
"This means as public policymakers, we will still be faced with tough decisions that require a response function asymptotic to Pareto principles. The critical decisions that we take will be judged by posterity," Dr. Addison stated.