Ghana is set to enjoy economic boom in 2016 as indicators point to a growth of more than 5.2 percent.
According to global economic team FocusEconomics, measures put in place by the government will ease the economic hardship currently experienced by the country, ushering it into a substantial growth by the second quarter of 2016.
“An increase in foreign inflows as a result of the government selling as much as US$1.5 billion in Eurobonds will as well as the IMF’s aid deal support the currency in the medium term”, the group predicted.
The gains is expected to reflect in some macroeconomic indicators such as inflation and the policy rate — averaging 13.1 percent and 20.17 percent respectively.
Presently, inflation is at 17.3 percent, while the Bank of Ghana policy rate stands at 25 percent.
Ghana is also awaiting two 450 megawatts KARPOWER ships from Turkey by close of year, while the Tweneboa-Enyenra-Ntomme (TEN) project is expected to produce 60mmscfd of gas by middle of 2016 to assist in the production of electricity.
FocusEconomics panelists are optimistic the 1.5 billion Eurobond and COCOBOD’s 1.8 billion dollar loan agreements will provide some buffer for the national reserve.
The robust interbank intervention is also expected to continue in the future to support Ghana’s weak currency.
Even though the group is predicting an exchange rate of 4 Ghana cedis 8 pesewas to a dollar in 2016, the Central Bank has maintained that inflows from the Eurobond fund and the COCOBOD loan will give the Bank of Ghana a substantial space to supply dollars unto the market.
The group was, however, of the of the view that, the Central Bank’s decisions to open up one or two-year domestic debt notes issues to foreigners may face challenges as it may under-allocate debt auctions amid low appetite by domestic banks.
The FocusEconomics Consensus Forecast for Ghana is one of the most dependable source of economic information available to investors across the world.
The group conducts essentials research by interviewing leading economists from Ghana after which it announces the result in its publications.
The team polls more than twenty of the most renowned experts on Ghana’s economy and provides their forecasts in a single report, which is complemented by authoritative analysis from the FocusEconomics research team.