Statistics & Publication
An Assessment Of Corporate Sector Performance And Contribution To Growth In The Ghanaian Economy
Wednesday, 31 March 2004 00:00
The corporate sector is receiving increasing attention in many countries since the Asian crisis. The increasing attention stems from the importance of the sector in the links that it has with economic performance. The development of a viable private sector requires a stable macroeconomic environment. An unstable macroeconomic environment characterized by high inflation, rapid depreciation of the currency and high interest rates do not promote sound corporate growth. Macroeconomic instability, with rapidly depreciating local currency, can increase the debt-servicing costs of firms with large foreign currency obligations, destabilize the corporate sector and even threaten the financial viability of many firms. Conversely, the corporate sector can affect macroeconomic performance if the sector does not have access to adequate capital for new investment. This generally will impair growth in the economy.

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