Ghana’s economy is being estimated by the Bank of Ghana(BoG) to grow between 2.0 and 2.5 percent in the third and fourth quarters of 2020.
According to Dr Ernest Addison, Governor of the BoG, a sustained level in consumer and business confidence, broad-based growth in the indicators of the Composite Index of Economic Activity (CIEA) are all supportive of positive growth conditions in the outlook.
Dr Ernest Addison, addressing journalists to announce the central bank’s decision on the policy rate on September 28, 2020, said, “On the real economy, despite the contraction in the second quarter, the indication is for improved growth outturn in the third and fourth quarters with leading indicators of economic activity point to a recovery.”
Dr Ernest Addison added that headline inflation, after edging up sharply to 11.4 percent in July 2020, has started going down which is now at 10.5 percent in August 2020, on the back of declining food prices.
He noted that food inflation has also steadily declined from 15.1 percent in May to 11.4 percent in August, partly reflecting seasonal effects.
Non-food inflation according to the central bank, has increased from 8.4 percent to 9.9 percent over the review period.
Meanwhile, the central bank disclosed its decision by the Monetary Policy Committee (MPC) to keep its policy rate unchanged at 14.5 percent for the third consecutive time.
The Governor explained the decision was based on the drivers of economic growth returning to normal prospects for a good recovery.