Rand Merchant bank’s Africa Macro Strategist for Global Markets Madam Celeste Faauconnier has warned that, Ghana may not attain the projected 4 percent growth rate.
Madam Faauconnier disclosed this to Citi Business News at the sidelines of the business Breakfast and Economic forum held in Accra by First National Bank Ghana, a subsidiary of FirstRand Bank Limited of South Africa.
According to her, the country may increase its expenditure this year due to the general elections.
The World Bank in its first Africa Pulse report for 2016 projected a moderate growth for Ghana, citing increased investor confidence, oil production from new oilfields and solution to the country’s energy crisis.
Also, President John Mahama has expressed optimism in the economy, stating that the growth rate will inch up to about 4 percent by the end of the year and increase marginally to about 6 percent in 2017.
But speaking to Citi Business News, Madam Faauconnier explained that commodity prices may not go up, and with inflation still high, Ghana may not see the 4% percent growth.
“The problem is when you are in a situation where you have to cut your budget that is when your growth gets affected .The government had been adhering to cutting the budget and they have to otherwise sentiments will drop and the currency will blow out again”, she said.
She urged the government to strongly adhere to the directives of the IMF to avert an increase in inflation.
By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana