Govt told to develop a long-term structure to rebalance economy

Finance Minister, Ken Ofori Atta

The Government of Ghana has been told to develop a long-term structure to rebalance the economy.

The call was made by a senior lecturer at the University of Ghana Business School (UGBS) Dr Patrick Asuming on the Key Points show on TV3 Saturday August 13.

“We have to have a long-term structure to rebalance our economy,” he said and further indicated that “We are not a country that is not short of ideas. But when it comes to implementation that is our bane.”

Dr Asuming further suggested that “the government should focus more on expanding our export base so that we can feel the real changes in our balance of payment per our policies.”

He was reacting to the rising rate of inflation in Ghana.

He noted that high inflation, especially food prices will be with Ghanaians for quite sometime.

This, according to him, is due to the challenges with the harvest season.

Inflation rate for the month of July 2022 was 31.7 per cent, the Ghana Statistical Service (GSS) announced on Wednesday August 10.

This is up from the 29.8 per cent recorded in June.

On year-on-year basis, the difference between Food inflation (32.3%) and Non-food (31.3%) was 1 percentage points.

On month-on-month basis, food inflation (3.3%)  records a higher rate than non-food (3.0%), leading to 0.3 percentage point difference.

CPI-July-2022_Rev-1Download

The percentage point increase in Non-food inflation (2.1) between June and July 2022 is higher than food inflation (1.6).

The percentage point difference between inflation for imported items (33.9%) and locally domestic items (30.9%) was 3%.

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Dr Asuming said “the high inflation is going to stay with is for a while, we all have to accept the highest inflation in the region we are seeing is going to be with us for sometime.”

He stressed “Ghanaians must condition their minds that food prices are not going to come down any time soon.”

By Laud Nartey|3news.com|Ghana