[ 2016-08-22 ]

2016 economic growth will go above 5%- Pres. Mahama
President John Dramani Mahama has expressed
optimism in the economy, predicting that Ghana
will experience growth above 5 percent by end of
2016, whiles the figure further hits over 8
percent next year.

This is not the first time, President Mahama is
making such predictions despite low enthusiasm
among the private sector due to high interest
rates, unreliable power supply, and high
inflation.

In 2015, real Gross Domestic Product was at 3.4
percent after government targeted over 5.0
percent.

Speaking at the Ghana Club 100 Awards ceremony
organized by the Ghana Investment Promotion
Center(GIPC), President Mahama maintained that
even though there have been some challenges,
economic indications recorded in the first quarter
of the year show a recovery.

According to him, government has been able to
reduce the country’s budget deficit through
fiscal discipline, hence Ghana may experience over
5.0 percent economic growth by end the year.

“Indeed growth in the fourth quarter of this
year increased to 4.9 percent and growth is
expected end of this year to exceed the 5.0
percent mark. It is our hope that we will
progressed above 8.0 percent by next year,” he
said.

He explained that as the end of 2015, government
was able to narrow the budget deficit to 6.3
percent from a projected 7.3 percent.

“We are seeing a significant drop in the debt to
GDP ratio from 72 percent at the end of 2015 to 63
percent at the end of may 2016. Inflation has
begun to fall”, he said.

He forecasted that inflation, which is currently
at 16.7 percent as at July will fall to 14 percent
by December, and achieve single digit by next
year.

Theme for this year’s Club 100

Delivering a welcome address, the Chief Executive
Officer of the GIPC, Mrs. Mawuena Trebarh stated
that this year’s edition focused on ways to
expand Ghana’s manufacturing sector.

According to her, Ghana’s manufacturing sector
holds the key to expanding the economy through
export.

“The theme for this year, ‘Manufacturing,
Steering Ghana’s Development’, could not have
been more appropriate given that the country is in
an era where government’s focus is on leveraging
investment in manufacturing,” she said.

She stated that the focus of manufacturing is part
of a broader import substitution strategy to grow
the economy.

She pointed out that, the GIPC as the lead
investment promotion agency in the country has
over the few years prioritized the manufacturing
sector as a major opportunity area for both local
and foreign companies.

“In that respect, the GIPC ACT 865 of 2013 makes
provision for special incentives for manufacturing
entities,” she said.

She explained that the manufacturing sector holds
an important role in linking all economic
activities in the country to stimulate growth and
create jobs.

Citing some achievements made by Ghanaian
indigenous manufacturers in creating jobs, Mrs.
Trebarh announced that there are many Small and
Medium Enterprises(SMEs) in all the ten regions
manufacturing products for export into the West
Africa region.

“This is what the Ghana Club 100 shows to the
world. Since it started, it has become the most
prestigious awards ceremony in the country,” she
said.

Some winners

Newmont Golden Ridge Limited was adjudged the best
company followed by indigenous oil marketing
company, Goil.

Golden Star Resources, Total Petroleum Ghana and
Ecobank Ghana followed in the third, fourth and
fifth positions respectively.

UniBank was adjudged the sixth best company, while
Zenith bank came seventh.

Other companies followed to the hundredth
position.

Source - citibsinessnews.com

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