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Wednesday, January 2, 2013

Ghana's political stability to define economic outlook for 2013

Business and commercial activities have resumed after the Christmas and New Year festivities, though on a rather slow pace.

The beginning of each year comes with fresh ideas for businesses to introduce products and services to satisfy clients and maximize income.

As most commercial ventures strategize for the months ahead, customers expect excellent service delivery to have value for their money.

Luv Biz Report has been speaking to an economist, Deodat Adenutsi who believes businesses that are aggressive and have good strategic plans can make a lot of gains in 2013.

In his economic outlook for Ghana in 2012, Mr. Adenutsi commended policy makers for macroeconomic stability, observing that the country’s interest rate had remained relatively stable whilst the rate of the cedi exchange at the forex market was controlled under manageable limits.

The economist however noted that job creation could have been better for 2012, a year that was characterized by electioneering in Ghana.

The outcome of the polls is yet to be accepted by all political interest, as the main opposition party challenges the election results in court.

Mr. Adenutsi said political stability and limited industrial actions are important for the economy to grow in 2013.

“In 2013 if these political issues will be addressed and there is stability, then I can say that the future will be very bright for Ghana…I expect more inflows of foreign resources [in terms of foreign direct investments], given that the environment is stable and I expect our export earnings to go up because we have to expect more from our crude oil” Mr. Adenutsi anticipated.

He also expects the Bank of Ghana to continue working towards a “nose-diving rate of inflation target” to reflect in policy rate for the banks to be more vibrant and competitive in reducing interest rates.

Story by Kofi Adu Domfeh

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