With the prevailing macro-economic stability which it hopes to sustain, Ghana will attain an inflation rate of 5 percent by the end of 2009, the country’s finance ministry has said.
Kwadwo Baah-Wiredu, minister of finance and economic planning, said the government would continue to provide relevant incentives to the core areas of the economy to ensure their optimal performance at all times.
Inflation rose to 11 percent in May by the rebased method and was mainly hiked by the food component.
Baah-Wiredu said the country’s policies for the medium-term were designed to raise the current growth rate from 6.2 percent to 8 percent by 2009, and preserve relative exchange rate stability within a stable macro-economic environment.
The pursuit of continued consolidation of public finances by government, according to him, will narrow the overall fiscal deficit to an average of 5 percent of the Gross Domestic Product (GDP).
The minister said the basic indicators at the national, town and district levels must be worked at so as to achieve an inflation rate of 5 percent by 2009, saying in order to scale up investment in the critical growth areas; government had decided to implement the "growth with stability compact."
He said under the compact, the government would among other things introduce a high level Value-For-Money Unit, to ensure proper selection of projects for inclusion in the public investment budget and efficient use of funds.
He gave the assurance that the government was taking major steps to close the infrastructure gap in Ghana’s energy sector by increasing investment in the sector.
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