Business confidence takes massive hit in Q4, 2015- AGI

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February 18, 2016 2:12 PM

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Economic activities in Ghana remain weak as businesses continue to grapple with numerous challenges, culminating in the shift in business confidence from 97.29 points from the third quarter's 102.30 basic points.The Business Barometer expresses the state of the business confidence as an index, with 100 as the base index and is calculated out of “current” business mood and “expectations” for the future.

Power supply Challenges

In the fourth quarter, 2015 report, as much as 96% of business respondents identified the unreliable supply of electricity as the biggest challenge that impeded business growth in the the period under review.They also bemoaned the massive hike in tariffs as the major cause of the increased costs of production in the last quarter.This puts power supply at the top of factors that impeded business operations in 2015, closely followed by performance of the Ghana Cedi against other major currencies.

In an exclusive interview with Pulse Business AGI president, Seth Twum Akwaboa, business confidence is expected to pick up in the first quarter of 2016.

" With electricity supply picking up, we are confident that business confidence in the economy will pick up." he said.

He however charged the central bank to take steps to stabilize the performance of the local currency against the major currencies.

" We must however be careful about the performance of the Cedi. The downward slide has already started and speculators have started their fear- mongering. Ghanaian businesses may not be able to stand another massive slide of the currency."

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