The Government’s consistent efforts to restore macroeconomic stability have resulted in a fourth consecutive decline in inflation, according to Finance Minister Ken Ofori-Atta.
In November, the inflation rate dropped to 26.4 percent, showcasing a significant decrease compared to the previous year.
Speaking at the dividend presentation of 30.89 million cedis by the Board of Twifo Oil Palm Plantation Limited, Ofori-Atta emphasized the tangible impact of these endeavors on the country’s economic landscape.
The Finance Minister praised the remarkable performance, stating, “We saw yesterday inflation came down to 26.4% which is literally where we were at 54 points sometime at the end of last year. So it is quite an impressive performance. And I know we have been through difficult times, but you look at inflation being halved. We see our growth which was expected to be 1.5% double to 3%. And we look at currency depreciation which since February has been about 7.2% declined a bit.”
Ofori-Atta highlighted that Greater Accra experienced the slowest growth in inflation, indicating positive economic progress. However, he acknowledged that food inflation remained a concern, although it had decreased significantly from 44% to 32% during the measured period. He stressed the need for improved logistical movement to ensure efficient supply chains within the country.
Deputy Minister of Finance, Abena Osei-Asare, urged State Owned Enterprises (SOEs) to strive for profitability while appreciating the government’s efforts to improve the business environment for sustainable growth.
Osei-Asare stated, “The government cannot continue to invest in these companies, and whatever is due to the government won’t be given to the government. So we appreciate what you have done, and we ask that we will continue to work with you in partnership to make sure you sustain this growth that we are seeing at your end.”
The consecutive decline in inflation and other positive economic indicators reflect the government’s commitment to ensuring macroeconomic stability and fostering an environment conducive to sustainable growth and development.
Source: dailyguidenetwork.com
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Hmmmnnn, as for this disaster of a finance minister, the least said about him the better. Which of your economics master told you in school that for a country's inflation to drop, stop paying people you owe, let the blood pressure (BP) of those you owe to rise , and inflation will drop. Just tabulate all the domestic debts you owe and have refused to honour and ask yourself " if i ( the finance minister) were living up to my domestic debt repayment obligations, will inflation decline? What you are doing amounts to mere window dressing. Roads contractors who executed road projects and handed over since 2020 have still not be paid, majority of whom are your own party people. People who volunteered their vehicles and cash to support your 2016 campaign have now parked their cars and are walking because you haven't paid them for jobs done, those who owe banks have suddenly gone indoors, some have developed mental problems because when you see a normal person walking and speaking to himself, know there's something wrong.. You go to pick loans and pocket 1.5% under a term called " transaction advisor fees" . Meanwhile when it comes to servicing the loan, all Ghanaians will pay including the 1.5% you alone pocketed alone. Is this not an " ***barred word*** farm " business? 4 legs good, two legs bad. You will enter the Guinness book of records as the first ever finance minister in the world who disputed the long held economic theory that " government debts are risk free " . Renowned economist the world over will have to take a second look at this economic theory. Government debts are the most risky in Ghana today, thanks to Umuofiahene's untouchable Cousin Ofori Atta.
Yes decline in inflation from over 50% to 26% is remarkable but does not call for celebration in the sense that decline in inflation does not mean deflation of prices of goods. Prices haven't dropped from where the abnormal inflation peaked last year, it simply means that instead of the average prices of goods increasing at a rate of 50% plus as observed last year, they're now increasing at a rate of 26% which is still very significant and continuously increasing hardship in the country. Another dimension of the hardship in the country is, when exchange rate and for that matter inflation increased abnormally to that level level last year, people's income have not increased at commensurable rates, rather the shocks caused people to lose huge sums of their savings and capitals. Consequently, any improvements that does not yield recovery of those losses of savings and capitals within the shortest possible time is not worth celebrating. Lastly, why do we call it macroeconomic stability? What is a stability that cannot withstand the slightest shock? If we had macroeconomic stability before COVID 19 as government wants us to believe, how does this so called stability become so susceptible and vulnerable to the least of shocks?