Economist and Political Risk Analyst, Dr Theo Acheampong has commended the government over the relative stability of the cedi against the major foreign currencies.
He said, this notwithstanding, he expects an appreciation of the cedi or sustenance of the level of stability.
“My expectation is that this will likely be sustained going forward. Especially, when you look at the budget there is a drop in revenue but greater cuts in expenditure,” he stated.
Dr Theo Acheampong also observed that Ghanaians are not enthused about the mid-year budget because it does not address their concerns.
He said Ghanaians were looking out for important things in the 2023 mid-year budget presented to Parliament by the Finance Minister, Ken Ofori-Atta on 31st July, such as reduction in inflation rate which directly affects their cost of living.
The Economist said the mention of 30% inflation rate as the target by December, is unimpressive.
According to him, government should not pride itself that it has been able to reduce inflation from 56% in 2022 to 42% this year.
He noted that 30% inflation by December is still on the high side as it will affect the cost of living in the country.
“I am sure the 30% inflation target is as a result of the IMF conditionalities which they need to meet by the end of the year. So, it will be good to them, but this target is still extremely high and it still eats into their savings and livelihoods.”
He also criticized the rate of development of the economy, “With a GDP growth rate of 2.8% and a development rate of 1.2%, how will this impact us?”
The Finance Minister, Ken Ofori -Atta presented the mid-year budget for 2023 in Parliament on Monday, July 31st, 2023. Like Dr Acheampong, the Minority in Parliament have shared contrary opinion on the details presented.