#GHBUDGET: Ghana’s economy has improved - Economist

Economist, Dr. Sam Olanyo Mensah has stated that, the country’s economy has been quiet a stable one.

Speaking to Nana Ampratwum on Silver fm Omanbapa morning show said, the government has been able to sustain some of the basic activities that they need to provide the citizens.

According to him, interest rate has reduced from 33% to 23%, inflation rate has also reduced from 14% to a single digit which means there is improvement in the economy.

The Finance Minister, Ken Ofori-Atta says the government is managing the finances of the country with discipline and competence.

Presenting the 2021 Mid-Year Budget in Parliament, Mr. Ofori-Atta said this is a manifestation of the fiscal operations in the first half of the year, adding the government has managed the economy better than it was managed in 2016.

“We are managing the finances of the country with discipline and competence. The fiscal operations for the period January to June 2021 indicate that the overall budget deficit was ¢22.32 billion, equivalent to 5.1%of GDP. The corresponding primary balance for the period was a deficit of ¢7.3 billion, equivalent to 1.7% of GDP, against a target deficit of GH¢4,797 or 1.1% of GDP.”

“We will continue to pursue our fiscal consolidation agenda to ensure that we remain within the appropriation given by this House [Parliament]”, he explained.

He further said the country’s macroeconomic indicators are pointing to the right direction despite the impact of Covid-19 on the economy which has shot up the country’s debt levels.

“We would like to note that notwithstanding our elevated debt levels as a result of COVID-19, our inflation rate is lower than it was in 2016, our interest rates are lower than they were in 2016, our exchange rate is more stable than it was in 2016, our foreign exchange reserves are much higher than they were in 2016, and we did not have to lay off any workers, nor cancel teacher and nursing training allowance”.

“Furthermore, we did not go to the IMF (International Monetary Fund) for a bailout programme, neither have we built an interchange for the price of three. This is because we have managed the economy much better than it was managed up to 2016. Let us not forget”, he pointed out.

On the back of these and other deliberate policies, the Finance Minister noted the country has attracted more foreign direct investments in the midst of the pandemic, outlining further that as of end-June 2021, total FDI into the country was valued at $954.2 million, indicating an increase of 71.2%, from $557.2 million recorded over the same period last year.

 

Dr. Olanyo stated that, the Finance Minister, Ken Ofori Attah statement that they have managed the economy well is the step in the right direction.

He again disclosed that, the current dept of the country does not mean that, the economy is not managed well.