Ghana's Economy EIU warns of difficult times for the economy

The report forecast government expenditure to go up significantly ahead of this year's election.

  • Published:
Seth Terkper, Finance Minister play

Seth Terkper, Finance Minister

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The current challenges facing the economy may not be over soon, according to the latest forecast of the Economic Intelligence Unit (EIU).

The report forecast government expenditure to go up significantly ahead of this year's election.

This, the report said will be influenced by pressures from the labour Unions and workers demanding more wages and salaries.

Government has projected to raise $40 billion and per the report, it looks like government might spend beyond that this year.

The report added that this will influence the general price level of goods and services which will see inflation go up.

The report also forecast that government will miss out its own budget deficit target for this year, essentially missing the budget deficit target set under the IMF programme.

This could have a huge impact on getting the third tranche of funds from the IMF programme.

The report also warned that the cedi will depreciate further this year but not at damaging as experienced last year.

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