AFRICANGLOBE – Ghana is taking steps — including reducing its deficit and inflation — to help the private sector lead the country’s transition to middle-income status, President John Mahama told a news conference on Tuesday.
Government’s role is to smooth the way for the private sector, Mahama said, as he defended his government’s record at a news conference to mark the first anniversary of his inauguration to a four-year term.
“You must bring interest rates down. You must lower inflation. You must bring the deficit down and ensure currency stability,” he said.
“These are the kind of environments you must create in order that the private sector can thrive.”
Ghana’s budget deficit was a persistent obstacle for the government in 2013, undermining an optimistic outlook for a country that benefits from stable democracy and rapid economic growth based on exports of oil, cocoa and gold.
Reducing the deficit to 8.5 percent of gross domestic product in 2014 was fair and achievable, he said.
“We targeted 9 percent deficit reduction (for 2013), but the provisional outturn is 10.2. It shows you how difficult governance is,” Mahama said.
“It’s only when you reduce the deficit that you can bring inflation back under control and then you can ensure that the currency is more stable.”
By: Kwasi Kpodo