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Ghana's growth is expected to remain stable in 2018 and 2019 due to strong growth in the oil sector, said the Standard Bank African Market Reveal Report
The May 2018 Report Reproduced Times Business to Accra said yesterday that above-average growth in the non-oil industrial economy and progress in public finance management would support the growth of the Ghanaian economy.
"Standard Bank expects 7.0% growth in the non-oil industrial economy is also expected to experience above-average growth over the next three years due to structural reforms in the sectors of finance and energy, "he added.
The report explains that steady progress in public finance management is expected to improve tax collection and increase government infrastructure spending.
However, he indicated that credit growth to the private sector has decreased. during the period under review due to a defensive stance taken by the banks as a result of the new minimum capital required by the Bank of Ghana (BoG).
"Private sector credit (PSC) growth was only 13.8% year-on-year in February, 17.5% year-on-year twelve months before. equity in the banking sector may have forced commercial banks to take a defensive stance with regard to credit extension. "
The report also estimated that for the banking sector to remain Fully compliant with the new minimum capital requirement, the sector needed a capital injection of between $ 800 million and $ 1 billion. a capital injection of $ 800 million to $ 1.0 billion to become fully compliant There is a strong possibility that this new requirement will trigger consolidation in the sector. When the new requirements have been met, we expect significant growth in credit , which could stimulate According to the report, changes to the minimum capital of banks would better position most banks financially. The African Markets Reveal is a monthly report published by Stanbic Bank Ghana's Standard Bank Group, which is interested in the economic and financial prospects of African countries.
reviews current economic situations and makes short- and medium-term predictions of the economies of African countries
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