It is a fact that global factors including the Russia-Ukraine war and Covid-19 have impacted negatively on all economies around the world including Ghana, a presidential staffer, Mr Dennis Miracles Aboagye has said.
This is a position he and the entire government have taken as being the main factors pushing the local economy into difficulties.
Speaking on the Key Points on TV3 Saturday August 13 while contributing to a discussion on the rising rate of inflation in Ghana, the Former Municipal Chief Executive for Akuapem North said these factors have been affecting not only Ghana but other countries including Turkey whose inflation rate, he said, has shot up.
“There is something going on globally that is difficult to control,” he indicated.
Earlier, he explained on the New Day show on TV3 Monday August 8 that Ghana imports goods from Russia and Ukraine.
Also, he said, Ghana imports from other countries that also rely on goods and services from Russia and Ukraine to boost their productions.
For instance, he explained, Vietnam, Brazil, America and Turkey are countries that Ghana imports goods from. These countries have also been affected by the war because they also rely on the two feuding European countries for supplies to be able to produce.
“Let me tell you how the Russia-Ukraine war affects us. We import somethings from Russia, we import somethings from America, Vietnam Brazil, Turkey and others.
“Those people rely on Russia and Ukraine to be able to boost their production before they are able to supply us. Because there is Russia-Ukraine war, the supply to us directly in terms of what we buy from Russia is affected.
“The supply of these fertilizers and and other things to Brazil, Turkey, Vietnam, America are affected, for which reason our import from Russia is very expensive, our import from Vietnam, US, Turkey, Brazil is also expensive and even not flowing because they are also affected by the Russian war, this is simple value chain supply.”
The National Communication Officer of the National Democratic Congress (NDC) Sammy Gyamfi however disagreed with him on the cause of the challenges.
Sammy Gyamfi said “what makes the hardship even more painful is, we have people who, instead of taking responsibility for their mess, mismanagement and recklessness, always make flimsy excuses for the problems that we have on our hands.
“Every NPP communicator is either blaming the problem on Covid-19 or the Russia and Ukraine when they know the the root problem has very little to do with these global problems.”
He added “the ever depreciating Ghana cedi, today it is the worst current in Africa according to Bloomberg, and the second worse currency in the world. Was this caused by Covid and Russia Ukraine war?”
Inflation rate for the month of July 2022 was 31.7 per cent, the Ghana Statistical Service (GSS) has announced on Wednesday August 10.
This is up from the 29.8 per cent recorded in June.
On year-on-year basis, the difference between Food inflation (32.3%) and Non-food (31.3%) was 1 percentage points.
On month-on-month basis, food inflation (3.3%) records a higher rate than non-food (3.0%), leading to 0.3 percentage point difference.
The percentage point increase in Non-food inflation (2.1) between June and July 2022 is higher than food inflation (1.6).
The percentage point difference between inflation for imported items (33.9%) and locally domestic items (30.9%) was 3%.
Dr Asuming said “the high inflation is going to stay with is for a while, we all have to accept the highest inflation in the region we are seeing is going to be with us for sometime.”
He stressed “Ghanaians must condition their minds that food prices are not going to come down any time soon.”
By Laud Nartey|3news.com|Ghana
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