The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu Aboagye, says recent improvements in Ghana’s macroeconomic environment are beginning to restore confidence in the private sector and stimulate business activity.
Speaking at the quarterly Economic Outlook on Channel One TV on Monday, April 27, on the theme “Taking Stock – Ghana’s Economic Turnaround: What Changed & What Comes Next?,” he said businesses are highly sensitive to macroeconomic conditions, which directly influence investment decisions.
“For business, you operate in a certain environment and that environment is the macroeconomic environment. So if that environment is good, it stimulates business activity; if it is bad, it puts people off and people will not want to invest,” he said.
He noted that 2022 was particularly difficult for businesses due to harsh economic conditions, pointing to extremely high inflation and interest rates at the time.
“From 2022 there were a lot of difficulties because the environment was harsh. Inflation was about 54%, and the policy rate was around 30%. Around that time, all the indicators showed we were among the highest in the world, except for extreme cases like Zimbabwe,” he said.
Mr Badu Aboagye, however, said the pace of recent economic stabilisation has been notable, describing the transition from high inflation levels to significantly lower rates as swift and impactful for the business community.
“The progress for me, the transition has been very swift – that is what we have been looking for – to move from that level to an inflation of 3.2,” he said, adding that achieving such improvements requires significant economic management effort.
He commended economic managers for the progress made so far, describing it as a positive signal for businesses and the wider economy.
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