Going forward, the global economy is likely to face lesser challenges, consequently growth is forecasted to strengthen to 3.5 percent in 2013.
This was contained in a press statement copied to the Ghana News Agency.
The statement said the uncertainties in the euro area, fragile financial markets and the looming United States “fiscal cliff” which confronted the global economy at the last meeting has eased; as a result, global economic conditions had modestly improved.
It said this was against the backdrop of improved sentiments in financial markets and increased economic activity in emerging economies, led by China; however, the International Monetary Fund’s January 2013 Update of the World Economic Outlook reported a global growth of 3.2 percent for 2012 down from 3.9 percent 2011.
It said some positive developments have already been observed in January 2013 which point to strengthening of the global economic conditions.
It said these include continued progress towards fiscal consolidation across major advanced countries, improvement in business confidence underpinned by strong outturns in the manufacturing indices for most regions and firm actions by major Central Banks to stimulate growth.
The statement said the weak demand for 2012 dampened inflationary pressures; consequently, inflation moderated to 3.9 percent by the end of the year.
It said the global consumer price inflation in 2013 is projected to pick up gradually as confidence and global demand strengthen.
It said the commodities market, expectations are that prices may experience two contrasting trends during 2013; in the first half, prices were likely to become bullish fuelled by a gradual rebound in global economic activity.
It said however, in the second half, commodity prices could be weighed down as the Fed exits quantitative easing alongside improved supply prospects in the energy sector.
The statement said these trends may have implications for the external sector especially in the second half of the year.
It said Ghana’s major commodity exports, crude oil prices are forecast to range between 115 and 117 United States dollars per barrel.
It said gold prices were forecast to average 1,825 per ounce, while cocoa prices were expected to average 2,500 United States dollars per tonne for 2013.