Economist and senior lecturer at the University of Ghana, Dr. Adu Owusu Sarkodie, has stated that a consistent decline in inflation has resulted in drastic price reductions as the economy continues a steady rebound.
Speaking on TV3’s Ghana Tonight programme on Monday, March 18, Dr. Adu Sarkodie pointed out that there have been improvements in the macroeconomic indicators, adding that “things are better now than in 2022”.
Touching on inflation, the economist stressed that the country should strive to achieve single-digit inflation as it was before COVID-19 struck.
“Yes, if you compare now and 2022, things are better. For example, current inflation is about 23 percent the 2022 ending year was about 54 percent…Yes, it is better than 54 percent but is it the best? No. Because before COVID struck, we were doing single-digit inflation, so the best performance you want to have is to go back to a single-digit inflation figure,” said Dr. Adu Sarkodie.
Has Ghana's IMF deal really paid off?: We haven't fully recovered. Until we complete the full debt, we shouldn't be rejoicing because we're not out of the woods yet. – Dr. Adu Owusu-Sarkodie, economist, University of Ghana Business School#GhanaTonight pic.twitter.com/ZoIhJ3F4oB
— #TV3GH (@tv3_ghana) March 19, 2024
He further emphasised the significance of the inflation drop on the prices of goods and services. He, however, underscored that some items may remain high but other key items would experience drastic price hikes.
“Inflation figures are taken from prices from our markets, from Madina Market to Agbogbloshie Market, and these price changes…it is true that the average inflation does not mean that on the average prices are being reduced but you can find some specific items whose prices have reduced, cement is a typical example”, Dr. Sarkodie stated.
IMF deal has paid off?
Meanwhile, President Akufo-Addo has said his government’s decision to secure a $3 billion extended credit facility with the International Monetary Fund (IMF) has paid off, looking at the rate of recovery of the Ghanaian economy since the facility was secured in 2023.
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Speaking at the Jubilee House when the Managing Director of the Fund, Kristalina Georgieva, and her delegation called on him as part of her two-day visit to Ghana, President Akufo-Addo said his administration will continue to implement sound economic policies and stay the cause concerning the current IMF programme the country is executing.
Ghana’s three-year-IMF programme is in its first year of implementation, with the nation so far, receiving a total of 1.2 billion United States dollars from the IMF in two payment tranches of 600 million dollars each.