Mid-Year Budget: Minority Fires Ofori-Atta For Saying Economy Has "Turned The Corner" For The Better

• The Finance Minister, Ken Ofori-Atta, has said the economy has taken a turn for the better
• The minority in Parliament has disagreed with the optimism of the finance minister, saying the economy has worsened
• Ofori-Atta delivered the 2023 Mid-Year Budget Review to Parliament amid an ongoing economic crisis

Finance Minister Ken Ofori-Atta used the 2023 Mid-Year Budget Review to declare that Ghana's economy was improving by saying, “We have turned the corner.”

But this did not sit well with the Minority in Parliament, which said the Akufo-Addo administration has instead worsened the economy in 2023.

Speaking after the budget reading, Minority Leader Cassiel Ato Forson said, "Let our minister not say anywhere that he has turned the corner."

“Unfortunately, the evidence and the numbers before us shows that he has rather deepened our woes.”

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Forson noted, for example, that the Finance Minister had revised economic growth targets downwards from 2.8% to 1.5%.

For him, this shows the economy is contracting, and Ghanaians will be further affected.

Optimistic note from finance minister

Ofori-Atta believed that Ghana is making modest gains after entering an economic crisis in 2022.

The minister claimed that the government’s plans were yielding positive results.

"Mr. Speaker, we have turned the corner and, more importantly, we are determined to continue down that path. Soon, we expect the measures taken to result in economic activity greater than anything experienced in the history of the Fourth Republic," said Ofori-Atta.

"Our plans and programmes should soon lead to a sustained increase in domestic production, including manufacturing and farming, replacing many of the products that we are used to importing.”

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Continued inflation

Despite the Finance Minister's claims, YEN.com.gh reported that Ghana's inflation rate rose for the second successive month in June.

Prices of goods and services rose to 42.5% after the May 2023 figure of 42.2%.

Food inflation increased to 54.2% in June 2023 after a figure of 51.8% in May 2023.

Massive BoG losses

The mid-year budget review followed the Bank of Ghana's posting losses of GH¢55.12 billion due to haircuts on its investments.

BoG's holdings of marketable and non-marketable instruments were exchanged for lower-yielding instruments under the debt exchange programme, according to its 2022 annual financial statement.

The BoG governor, Dr Ernest Addison, has said he was working to ensure that equity was restored to a positive path by the end of 2027.

Source: YEN.com.gh