The current energy crisis has led to a crippling of government's fiscal policy as outlined in the 1998 budget. Consequently, macroeconomic targets set for this year are not likely to be achieved. The Research and Information Department of the CDH Group say analysts believe "growth targets set for this year are unlikely to be met unless immediate and implementable solutions are arrived at to bring things into real focus". The industrial sector, which contributes about 60 per cent of Gross Domestic Product (GDP), is currently handicapped with its dominant sub-sector of manufacturing operating significantly under capacity due to widespread power shortage from the load shedding exercise. The department noted that macroeconomic targets this year include a Gross Domestic Product growth rate of 5.6 per cent from 5.1 per cent last year and inflation of 9.5 per cent from 20.8 per cent in 1997. Going by the new formula of the Ghana Statistical Service Department in fixing the new Consumer Price Index (CPI) formula inflation in Ghana for 1997 has been recalculated to 20.5 per cent from the previous figure of 20.8 per cent. The old calculation was done on price levels at the beginning of the year, but the new one calculates inflation from September last year with a base rating of 100. Government has in the last few months been at its best in trying to find ways out of the energy crisis, which has led to not only a slow down in productivity levels, but also thousands of workers in the industrial and manufacturing sector losing their jobs. Companies such as Volta Aluminium Company (VALCO), Aluworks Company Limited (ALW), Tema Steel and other manufacturing companies in Tema and Accra have in the last three months laid off over 1,000 employees due to low production levels.
The current energy crisis has led to a crippling of government's fiscal policy as outlined in the 1998 budget. Consequently, macroeconomic targets set for this year are not likely to be achieved. The Research and Information Department of the CDH Group say analysts believe "growth targets set for this year are unlikely to be met unless immediate and implementable solutions are arrived at to bring things into real focus". The industrial sector, which contributes about 60 per cent of Gross Domestic Product (GDP), is currently handicapped with its dominant sub-sector of manufacturing operating significantly under capacity due to widespread power shortage from the load shedding exercise. The department noted that macroeconomic targets this year include a Gross Domestic Product growth rate of 5.6 per cent from 5.1 per cent last year and inflation of 9.5 per cent from 20.8 per cent in 1997. Going by the new formula of the Ghana Statistical Service Department in fixing the new Consumer Price Index (CPI) formula inflation in Ghana for 1997 has been recalculated to 20.5 per cent from the previous figure of 20.8 per cent. The old calculation was done on price levels at the beginning of the year, but the new one calculates inflation from September last year with a base rating of 100. Government has in the last few months been at its best in trying to find ways out of the energy crisis, which has led to not only a slow down in productivity levels, but also thousands of workers in the industrial and manufacturing sector losing their jobs. Companies such as Volta Aluminium Company (VALCO), Aluworks Company Limited (ALW), Tema Steel and other manufacturing companies in Tema and Accra have in the last three months laid off over 1,000 employees due to low production levels.
