Inflation in Africa: Some subsidy programs prolonging situation – Jeff Gable

 


Sources:citinews




The Head of FICC Research and Chief Economist at ABSA; Jeff Gable, says the consistent introduction of subsidies in the midst of global economic challenges will only prolong the effects of inflation in that country.


According to him, governments in Africa must rather focus on slowing down demand for products rather than subsidizing the cost.


Speaking at Citi TV and ISSER’s Cedi Summit in Accra on Monday, Jeff Gable said the drive to subsidize the cost of products in developing economies is forcing governments to use funds reserved for social and economic development to subsidize prices of goods.


Mr. Gable suggested that some subsidies however remain important as part of the strategies to address inflation challenges.



 

“[In Nigeria for instance] almost all of the Federal Government’s funds that are to be set aside to pay for new hospitals, schools, construct roads and energy infrastructure is used to subsidize petrol… Prices are high because the demand for the product supersedes supply. One of the ways of bringing the prices down is to demand less for it… Some of the subsidy programs that exist here actually prolong the [inflation] situation,” he said.


He added that there is still uncertainty at the global level about inflation slowing down.


“Economists are moving the inflation forecasts up and up rapidly… [Economists are] uncertain whether any of these things will get better,” he added.


The Cedi Summit is being organised by Citi TV in partnership with the Institute of Statistical, Social and Economic Research (ISSER) and ABSA Bank Ghana as part of this 2022 Citi Business Festival.



 

Keynote speakers at the summit are the Director of the Institute for Statistical, Social and Economic Research (ISSER) at the University of Ghana; Prof. Peter Quartey, the Head of FICC Research and Chief Economist at ABSA; Jeff Gable and David Ofosu-Dorte; a Senior Partner at AB & David

Comments

Post a Comment

Popular posts from this blog

People Living with Disability Under Nkwanta North District enjoys common fund disbursment.

Image
  People Living Disability within the jurisdiction of Nkwanta North District are Overwhelmed Today for the disbursement of their Disability common funds by the district assembly. Nowadays, Ghana government does not want to give physical money to Persons With Disability (PWDs) because they misuse it or doesn’t use it for intended purpose.  In this case, the MMDAS can give physical money to PWDs on peculiar issues like settlement of medical bills or medications and Private Special School Fees of which the bill amount must be attached to the application letter, which Nkwanta North is not an exception. Due to this, Nkwanta North District has today did their 9th disbursements since the Ghana government  instructed the MMDAS to start giving physical monies to PWDs. Today which happened to be Tuesday Auguest, 30.  Nkwanta North District has given seven deep freezers, four showings machines, one bicycle, two package of zincs one kellsburg motor and monies to persons with disabilities. Mr. Brig
Read more

Rising fuel prices: things are expected to get worse by December-Duncan Amoah

Image
  Duncan Amoah, Secretary-General of the House of Petroleum Consumers, said we failed to plan and prepare for the global oil crisis and it impact on Ghana's  economy, as the government is currently doing. According to him, the current sharp rise in oil prices is a reaction to the lack of national planning and preparation. He said some attempts to force the government to address these issues were filled with negligence and defensive stance. Regarding JoyNews PM Express Business Edition, he said: We are in a very difficult time and will not be a child's play until December. "We continue to say these things so that we can take steps to avoid catastrophe. you would hear excuses, rationalization, and sometimes attempts to defend what we should be away from. " He said it was fairly unreliable that the country's fuel supply relied solely on what could be stored by private companies selling petroleum products. He added that oil stora
Read more

Former parliamentarian with a disability from Anambra, Nigeria, was beheaded by a kidnapper who had already received a huge ransom from his family.

Image
  Relatives of Nelson Achuku are reported to have found a decapitated body between the borders of Uke and Ukpol. The deceased's family paid the kidnapper a ransom of 15 million naira to secure his release, but it is unknown why they killed him anyway. "I couldn't believe he would be killed when he had already paid the N15 million ransom demanded by his prisoners," a family source complained. According to puls.ng, on Tuesday, June 21, 2022, when the corpse began to rot, the deceased Achukwu family immediately buried the decapitated corpse. The Nigerian News Agency (NAN) reports that the MPs killed represented Nevi South II between 2003 and 2007, when Dr. Chris Ngige was Governor of Anambra. He was abducted from his home in Ukpore, Nnevi South Local Government Area. Anambra Police Command confirmed the case and said it was working 24 hours a day to arrest the perpetrators facing the consequences of their actions. "The victim was
Read more