I don’t think inflation will drop drastically from 42% to single digits this year – Prof Quartey

The Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Professor Peter Quartey, has noted that Ghana’s current inflation will not drop drastically just yet.

He said the current IMF programme the country is running is a temporal measure of the problems the country faces.

The ISSER Director said reduced inflation rates are likely to be witnessed in 2024 if government does things properly.

Prof Quartey said: “Not this year. I don’t foresee us hitting a single digit this year. We are already in July and I don’t think inflation will drop drastically from the current 42 percent to single digits. Perhaps, if we do our things well, we are likely to see that in 2024.

“So yes, IMF is a temporary short-term measure to stabilize but we need to put in a system that will ensure long-term sustainability,” he is quoted by 3news.com.

However, Prof. Quartey is of the belief that a diversified economy is the key Ghana needs to be able to overcome its economic challenges.

“The long-term solution will be to diversify our economy. we cannot continue to rely on primary commodity exports because that will not give us the needed forex as we move forward.

“If we don’t diversify and we rely on just one or two commodities, manufacturing doesn’t add much value, we export products in their raw form then we will not get enough forex and the exchange rate will continue to depreciate and we will be back to the IMF again,” he said.

SSD/DA

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