Browsing: Economy and Finance

World Bank has indicated that, the world faces a “human catastrophe” from a food crisis arising from Russia’s invasion of Ukraine. The Bank is worried at the rate in which food prices are rising, saying it would push hundreds of millions of people into poverty and lower nutrition, if the crisis continues

IMF’s April 2022 Fiscal Monitor also revised its forecast of an end year inflation of 16.3% from an initial forecast of 8.8%. This means the country will miss the Bank of Ghana target of 8%+\-2. It indicated that, the rising inflation has been triggered by higher commodity prices such as crude oil and cereals as a result of the Russia/Ukraine conflict.

Looking into Ghana’s fiscal position following increased spending on health and household support due to COVID-19 pandemic, Ghana’s fiscal deficit would widen to an estimated 11.3% in 2021. This is well above historical level

We are quite sure that, in the next month or two, we would be able to export the Doré gold that we have acquired and once that is refined, it could become part of our gross reserves”, disclosed by the Governor of the BoG, Dr Ernest Addison.

Investment in new oilfields will be slow, delaying a resurgence of real GDP growth to pre-coronavirus levels, despite efforts by the government to facilitate industrialisation under the Covid-19 Alleviation and Revitalisation of Enterprises Support programme, says EIU.

GNPC must explain this financial performance at a time when it also spent GH₵200 million on ‘Corporate Social Responsibility’”, Bright Kwashie Dzokoto, a tax expert and a member of Tax Justice Coalition demanded. “This accountability-free regime must end.

As global risk may worsen further in the first-half of 2022, and Ghana’s ability to tap the Eurobond market may further wane. Foreign exchange reserves could remain under pressure in 2022 — unless the government acquires alternative sources of external bilateral and multilateral funding.

Of the GH¢24.696 billion, GHȼ20.102 billion would be used to rollover maturities, while the remaining GH¢4.593 billion which is fresh issuance, would be used to meet Government’s financing requirements

To date, however, wealthy countries have under-promised and underdelivered. They have yet to reduce emissions to the extent necessary to avoid warming beyond 2°C, let alone 1.5°C. And, as President Akufo-Addo also mentioned, they have failed to honor their 2010 promise of USD100 billion per year to support developing countries’ responses to climate change. Tragically, the consequences will be felt by all for decades to come.

The release issued last week and signed by the Managing Director, Edwin Provencal, indicated that, “the revaluation which was a deliberate decision to enhance the reporting of the company led to a deferred tax obligation of GHC292,935,973 compared to the net loss of GHC291,017,758, a difference of GHC1,918,215 (Appendix 1). The increase in the value of the revalued assets also resulted in increased depreciation charges which further reduced the bottom-line or the profit for the year. But, the ‘deferred tax obligation’ aspect beats the financial reporting knowledge of the finance expert. This led him to ask questions in awe.