As the year of 2023 approaches, Ghanaians said they are expecting improved socioeconomic conditions in the new year given the multiple economic hardships confronting the country in 2022.
“This year has been quite challenging for our country and people regarding the cedi depreciation and rising inflation,” Henry Djangmah, a 44-year-old businessman in Ghana’s Tema city, told Xinhua in a recent interview.
His comments came on the heels of Ghana’s annual inflation rate quickening for the 18th straight month to 50.3 percent in November along with rapid depreciation of the local currency, the cedi, throughout most of the year. According to the Ministry of Finance, as of Nov. 23, the Ghanaian cedi had depreciated cumulatively by 54.2 percent against the U.S. dollar.
Since July, the worsening economic climate has prompted the Ghanaian government to start negotiations with the International Monetary Fund (IMF) to seek a bailout package. Its efforts paid off with an interim agreement with the IMF reached in December.
A flurry of measures by the government has led the cedi to see some cumulative gains against the U.S. dollar in recent days.
Many Ghanaian residents said recent developments and interventions by the government, along with the pick-up in economic activity and gradual restoration of global supply chains, have revived their hope that the financial situation could improve in the coming year.
“The recent appreciation of the local currency against its major trading currencies is good for us as business people, and I’m quite optimistic it continues into 2023,” Djangmah said.
Kwesi Biney, a public servant, said the recent reduction in transport fares, which rarely happens in Ghana, has given some relief to consumers and expressed hope that the economic conditions will be better for the people who had to live under surging prices of goods and services for more than 10 months.
“What gives me hope that things will be better next year is the reduction in fuel prices, transportation fares, spare parts for vehicles, and other products. If the government continues to clamp down on illegal forex operators and the cedi strengthens against major currencies, Ghanaians will enjoy improved conditions in 2023,” Biney said.
In an address on Christmas Eve, President Nana Addo Dankwa Akufo-Addo said Ghana has begun to witness some positive gains, which is a clear indication that things will get better. He expressed confidence that the economy would fully recover after the recent setbacks.