30% inflation rate target is still high – Economist on mid-year budget.

Dr. Theo Acheampong, an economist, and expert in political risk, has noted that Ghanaians are not enthusiastic about the mid-year budget since it does not address their issues.

In the 2023 mid-year budget, which the Finance Minister Ken Ofori-Atta submitted to Parliament on July 31, he claimed that Ghanaians were seeking for important things, such as a decline in inflation, which directly affects their standard of living.

The target inflation rate of 30% by December is not outstanding, the Economist remarked in an interview with Alfred Ocansey that aired on TV3’s Ghana Tonight on July 31, 2023.

The government shouldn’t take pride in having managed to lower inflation from 56% in 2022 to 42% this year, according to the Economist.

He said that 30% inflation by December is still excessive and will have an impact on the country’s cost of living.

“I’m certain that the 30% inflation objective is due to the IMF requirements, which they must fulfill by the end of the year. They will benefit from it, but the target is still quite high and depletes their savings and means of support.

He also challenged the economy’s rate of growth, asking, “How will this impact us with a GDP growth rate of 2.8% and a development rate of 1.2%?”

In terms of the currency rate, he said, the cedi has been quite stable for a while, which he is pleased with, but he has higher expectations from the government.

“I predict that this will probably continue in the future. In particular, when you look at the budget, you’ll notice a decline in revenue but greater reductions in spending,” he said.

On Monday, July 31, 2023, the mid-year budget for 2023 was presented in Parliament by Finance Minister Ken Ofori-Atta. The Minority in Parliament has opposing views to those of Dr. Acheampong regarding the details provided.

Through Clara Boadi Konadu

Source:3News.com