🚩Inflation eased considerably by 1% to 7.5% in May 2021, signaling a likely drop in cost of credit, all things being equal.
The fall in inflation means that the rate at which prices of some goods and services increasing has slowed down. Food inflation particularly fruit and vegetables as well as soft drinks slow down considerably in May 2021, despite seven sub-classes recording inflation higher than the overall food inflation of 5.4%. According to the figures by the Ghana Statistical Services, Food inflation was 5.4% in May 2021, lower than 6.5% recorded in April 2021. Non-food Inflation was 9.2%, also lower than 10.2% recorded the previous month.
🚩The World Bank has maintained a modest 1.4% growth rate for Ghana this year, its June 2021 Global Economic Prospects Report has revealed. In January 2021, the World Bank projected the same growth rate, citing slow growth in most sub-sectors of services and industry. This is despite expected resilience in agriculture sector which it said will not be sufficient to offset the covid-19 pandemic’s lingering adverse impact on the oil and other sectors of the economy. The Gross Domestic Product (GDP) growth rate will be lower than Sub Saharan Africa’s average of 2.8%, and furthermore in sharp contrast to the International Monetary Fund’s forecast of 4.6% GDP for this year.
🚩International Finance Corporation (IFC) has expressed commitments to help Ghana strategize on focusing the GH¢100 billion Ghana CARES programme on critical areas. Ghana Coronavirus Alleviation and Revitalization of Enterprises Support (CARES) Obaatanpa Programme was launched by the government of Ghana to mitigate the negative impact of the COVID-19 pandemic on the economy. The Government of Ghana and the International Finance Corporation (IFC) is expected to hold a two-day retreat to strategize on how to align IFC’s medium-term strategy to the priority areas.
🚩The State Interest and Governance Authority (SIGA), will recommend 10 State-Owned Enterprises for listing on the Ghana Stock Exchange, as the government looks to attract private capital to improve their operations. SIGA is exploring various strategies including divestiture, joint-ventureship among others to “enhance efficiency of performing SOEs and revive the struggling ones,” Director-General of SIGA, Stephen Asamoah-Boateng told GBC News. The Consolidated Bank Ghana which was formed out of seven dissolved banks in the financial sector crisis is part of the first batch of SOEs to be recommended for listing, persons familiar with the matter disclosed to GBC News.
Prince Henry Danquah