Some economists are positive Ghana will attain single digit inflation by next year.
According to them, key indicators such as declining inflation and other fiscal conditions as well as the stable currency regime, could help attain single digit inflation in the future.
The Bank of Ghana is optimistic of achieving a single digit inflation of 8 percent plus or minus 2.
Although the central bank has missed the timeline for this target a couple of times, it is hopeful of achieving so by the third quarter of 2018.
Ghana’s inflation currently stands at 12.5 percent.
In an interview with Citi Business News, the Managing Director and Head of Quantum Global Research Lab, Professor Mthuli Ncube said Ghana’s economic outlook has positive prospects of achieving a single digit inflation.
“One of the drivers of inflation in the first place is public expenditure; in terms of the deficit, that is coming under control and that is positive. It also shows signs of a steady cedi too. I will say that the physical conditions count but also the exchange rate conditions is part and will stabilize inflation and push it down,” he explained.
Figures from the Ghana Statistical Service have also shown that inflation has been declining since October 2016.
As at the end of 2016, Ghana’s inflation reached 15.4 percent.
In January 2017, the inflation inched down further to 13.3 and it is currently at 12.1 percent in June 2017.
Professor Mthuli Ncube spoke to Citi Business News at the sidelines of a press briefing on the Africa Investment Index with Quantum Global in Accra.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana