Economist, Dr. Daniel Amateye Anim has described the recent deflation in the nation’s economy a good news.
He revealed that his outfit had earlier projected an increase in the inflation rate for the month of August and beyond.
In a press briefing on 13th September, 2023, the Ghana Statistical Service announced the inflation rate for August 2023 to be 40.1% which was a 3% decline from the 43.1% recorded in July 2023.
Dr. Anim made this revelation in an interview with UniversBusiness, where he expressed hopes that the macroeconomic variables that drove the reduction will be sustained for further downward decline.
“It is progressive…considering the high rate of inflationary rating we have currently and almost all of us projected a higher rate of inflation for the month of August and going forward but for the fact that it has gone down by 3%, is quite good news for the economy. We hope that the variables, driving it would be sustained for a further downward reduction.”
Analyzing the impact of the reduction in inflation on the overall economic outlook for Ghana, especially in terms of its effects on consumers and businesses, Dr. Anim called for more work to be done to ensure a stable macroeconomic environment.
“The rate even though it has reduced by 3%, almost all the macroeconomic indicators are quite high, inflation as at 40.1% currently, exchange rate regimes and that is not good for businesses. As much as there is reduction and it gives us certain degree of comfort but we need to work harder to ensure that we have the macroeconomic environment stable and at a very appreciable rate that will rather work for businesses”
Dr. Anim further called on government and central bank to initiate policies and actions that will help Ghana to maintain stable inflation levels in the future.
“Going forward, we need to beef up our reserves and the way to go is to add value to our produce so that we could attract more inflows in terms of exportation. We should also find a way of minimizing imports by way of producing goods that we have a competitive urge of producing as a nation.”
“There should be policy not only just for farmers to produce but along value chain, we will have storage facility, processing, marketing so that at any point in time, there will be much for the citizens to depend on at a very competitive price.”
Story by: John Collins Kaledzie | univers.ug.edu.gh