Some economists have cast doubt over government’s ability to achieve its inflation target of 8% for 2016.
According to them government’s spending in an election year will make it impossible for the target to be met.
Government missed its inflation target for 2015 after revising the target from 11.5 percent to 13.7 percent for the year.
Speaking to Citi Business News economist and director at the Institute of Statistical Social and Economic Research (ISSER) Prof. Felix Ankomah Asante said considering the current macro economic conditions achieving an inflation of 8 percent was impossible.
“I think it will be difficult. Yes we are in an election year we expect spending to go high, even if government does not spend; people who do the campaign will spend.
So we expect that prices of goods of services will go up as there are some businesses that come once in every four years for people to take advantage.
So generally we expect prices to go up, so I doubt whether we will be able to get the 8 percent. Maybe it will move a little up above what we expect but 8 percent will be very difficult.”
Prof. Felix Ankomah Asante added ‘i know they are doing their best but we need to do a little more observation and to also make sure that other macro indicators of the economy are also held in check.
We are virtually doing nothing apart from trading so if the cedi is stable because trading is not so active then we need to give ourselves time to make sure that we maintain whatever policy we have over a period of time.’ He stated.
By: Norvan Acquah – Hayford/citifmonline.com/Ghana