News Guide Africa

Category: News

  • NPP exposed on electricity excess capacity lies

    NPP exposed on electricity excess capacity lies

    Press Release

    For Immediate Release

    09/05/2022

    NPP FALSE CLAIMS ON EXCESS CAPACITY DISPLACED AS THE COUNTRY FACES EMINENT DUMSOR.

    The baseless and unfounded allegations by the NPP Government that, Ghana has excess electricity generation capacity, which the country does not need, leading to the payment of about GHC 17 billion in excess capacity bills, has been displaced with available facts as contained in the recently released 2022 electricity supply plan for Ghana.

    Sadly, these contrived and concocted narratives led by no less a person than the Vice President, Dr. Mahamadu Bawumia against the person of former President Mahama was therefore as needless as they are mischievous and propaganda-laden.

    The 2022 publication authored by a technical team known as “The Power Planning Technical Committee (PPTC)” inaugurated in 2020 by the Hon. Minister of Energy to among others examine, plan, and make recommendations for the Ghana Power System as per the requirement in Section-7 of the National Electricity Grid Code and Section 2 (2)(c) of the Energy Commission Act 1997 (ACT 541) makes very interesting conclusions.

    Amongst others, the report makes an astonishing but factual revelation that the Nation’s existing generating capacity will not be adequate to serve the projected demand with the required 18% reserve margin.

    It will be recalled that Dr. Mahamudu Bawumia at a recently held Tescon training and orientation conference at Kasoa made very wild and unsubstantiated claims on a so called GHC 17 billion payment by the state arising from what he described as excess capacity bills.

    The minority has since described this statement as false and baseless and has further challenged the Vice President and the NPP Government to produce the  details on such payments to substantiate this fictitious claim. It will interest Ghanaians to know that till date no such information has been made available.

    The current information as contained in the 2022 Electricity Supply Plan clearly points to a deceptive and dishonest narrative by the current NPP Government on the cause of the current economic hardship that the nation is experiencing.  

    For the avoidance of doubt, the following conclusions are drawn from the 2022 Electricity Supply Plan as captured in pages (vi)-(viii) of the report:

    1. An estimated amount of MMUSD 872.8 will be required to purchase Natural Gas to run the thermal plants (.i.e. a monthly average of MUSD 72.74).

    2. The provision for LCO, diesel and HFO during the gas outage period leads to a total of US$ 988 Million required for fuel purchase in 2022.

    3. Relocation of the 250 MW Ameri Power Plant from Takoradi to Kumasi reduces transmission system losses significantly. It also improves the voltage regulation in Kumasi & its environs and aids export.

    4. The existing generating capacities will not be adequate to serve the projected demand with 18% reserve margin for any of the planning years

    5. The timely completion of the committed projects barely has adequate generation up to 2024.

    5. Additional generation capacity will be needed from 2023, specifically, 184 MW, 187 MW, 114 MW and 337 MW additional generation capacity will be needed in 2023, 2024, 2026, and 2027, respectively.

    -RECOMMENDATIONS-

    Based on the above conclusions, the following are some of the key recommendations made:

    1. Due to the growing electricity demand in Ghana, there is an urgent need to make arrangements to increase gas supply volumes for more Thermal generation. It is also very important to make necessary investments towards an improved gas supply reliability owing to the increasing dependency on natural gas for power generation.

    7. Efforts should be expedited to complete the relocation of the 250 MW Ameri Power Plant to Kumasi by September 2022 to create a new generation enclave in Kumasi, among others.

    It is equally revealing from the report that the claim that Ghana has excess Gas leading to capacity payments are false. Indeed, the report rather recommends that efforts are made to increase available Gas supply. So, the Ameri plant was not bad and needless after all, as the NPP wanted us to believe.

    Thank you.

    Hon.John Abdulai Jinapor (MP)

    Ranking Member

    (Mines and Energy Committee)

  • Aker-GNPC deal: FPSO price inflated by over US$600mn

    Aker-GNPC deal: FPSO price inflated by over US$600mn

    A case of an inflated price has been identified in the botched Ghana National Petroleum Corporation (GNPC) and the Norwegian Petroleum Company, Aker Energy transaction in which GNPC wanted to pay Aker US$1.65 billion to acquire a 37 percent stake in the Deepwater Tano/Cape Three Points (DWT/CTP) and 70 percent interest in SDWT.

    The inflated price has to do with the cost of the Floating Production Storage and Offloading (FPSO).

    FPSO is a marine vessel, used by the offshore oil and gas industry, for the production and processing of crude oil.

    Ghana would have lost a colossal US$565 million, if the deal had gone through in the form and shape it was presented by the GNPC last year.

    The two institutions, had been involved in negotiations to acquire Ghanaian oil blocks, and needed an FPSO for the exploration of the crude oil.

    Interestingly, while the state-owned GNPC is quoting whopping US$600 million, Aker Energy says the FPSO, is rather costing a paltry US$35 million; US$565 million less than what officials of GNPC led by its immediate past Chief Executive Officer (CEO), Dr Kofi Koduah Sarpong, had in presentations told Akufo-Addo’s cabinet, the Ghanaian media and civil society organizations during the heated GNPC-AKER debate last year.

    The deal was suspended after it was discovered that, GNPC did not conduct any due diligence on the wells before expressing interest in them willing to cough up a massive US$1.62 billion.

    Dr Sarpong and Dr Baah-Nuakoh, GNPC’s General Manager, Sustainability and Stakeholder Relations in many power point presentation, said “Aker’s share of cost = US$740 million, comprising FPSO (US$600 million) and cash calls and IGC financing (US$140 million)”.

    But the Norwegian company in its “Fourth quarter and preliminary annual results 2021” mentioned that “Aker Energy and its license partners have secured the FPSO Dhirubhai-1, from Ocean Yield for USD 35 million, for the Pecan field development and are working to firm up cost and schedule and further optimize the concept to mitigate cost inflation”.

    The report said that, “Aker Energy is an E&P company aiming to become an offshore oil and gas operator in Ghana”, adding “Aker Energy and license partners are working to submit a revised Plan of Development for the DWT/CTP block by the end of second quarter 2022”.

    Benjamin Boakye of the African Centre for Energy Policy (ACEP) was the first to identify and raise issues with the inconsistency in the amounts presented by the two institutions i.e. GNPC and AKER-Energy.

    He took to his Twitter handle, saying “in the same accounting year, the cost of the same FPSO is $600m to GNPC and $35m to investors. Activist saved Ghana from the #Aker transaction. I hope the media houses that said CSOs were Anti-Ghana are following the numbers”.

    Dr Sarpong, in his farewell message to GNPC workers had stated that “Aker Energy’s Pecan Field will come on stream in the very near future” meaning the Akufo-Addo government was still interested in the deal.

    Aker-energy in the “Fourth quarter and preliminary annual results 2021” also stated that “during the quarter Aker Energy secured further financing from African Finance Corporation of an additional 100 million dollars in senior secured convertible bonds. Aker Energy is evaluating different strategic options for its ownership in the DWT/CTP block. In August 2021, the Ghanaian Parliament approved a mandate for GNPC to negotiate a transaction with Aker Energy regarding a potential acquisition of a stake in the DWT/CTP block”.

    The Herald is also investigating a report that the Aker deal, has been whittled down to around US$300million from a high of $1.6 billion.

    Sometime last year, many civil society groups and personalities challenged the GNPC-Aker deal.

    One such person was Dr Theo Acheampong, a Petroleum Economist and Political Risk Analyst, who stated that the proposed $1.65bn Aker

    Energy/AGM – GNPC farm-out deal is overpriced.

    He told Accra-based Joy FM on its Super Morning Show, Tuesday, August 10, that “in my view, there’s overpricing of the assets, the assumptions that went into the assets need to be questioned and we shouldn’t be paying for the amounts that are being quoted”

    Dr Acheampong, stressed that the oil price being used i.e $65, $67 per barrel, for the transaction, is questionable.

    According to him, the valuation could have been based on between $50 and $55 dollars per barrel, which will reduce the value of the entire transaction substantially.

    He further stated that after consultations with experts in the oil and gas industry, he arrived at a conclusion that the entire deal should be valued at a cost not more than $500million.

    “I have been running some numbers myself, and from consultations with persons who work in the industry both in Ghana and outside, I don’t think that the two assets are worth more than 500million dollars,” he said.

    He added that, “if you run a number of the scenarios and the numbers based on the production, projections and oil prices, you’re not looking at anything more than half a billion in terms of the value and that’s where I think we have to go back to question a number of the assumptions that are really going into these numbers that are being bandied about.”

    “As far as I know, nobody has certified the reserves, nobody has certified the contingent resources on the South Deep Water block, as far as I know, the commerciality of the Nyankom-1X has a big question mark around that and if all of these are taken into account, the value should be much lower,” he added.

    GNPC had claimed that the approval will allow GNPC to own significant stakes in offshore oil blocks for the first time since it was established in 1983, adding Ghana’s interest in the Aker Energy and AGM blocks will increase to 47% and 85%, respectively.

    GNPC, has argued in its proposal to Parliament, that the new ownership structure will provide it and Ghana a firm ground to face the emerging energy transition in a well-prepared manner and create significant value for the benefit of the Ghanaian people.

    Once finalized, GNPC Explorco, the commercial wing, would also become a joint operator with Aker Energy in both blocks through a new joint operator company, providing an opportunity for GNPC to acquire operatorship capacity to enable it to play a major role as an Exploration and Production company.

    Bright Simons, a global thought leader, also has raised red flags over the planned acquisition of stakes in Aker Energy and AGM Petroleum Ghana oil blocks by the Ghana National Petroleum Corporation (GNPC) saying it’s mind-boggling.

    In an article analyzing the developments, Mr Simons rubbished the GNPC’s reasoning for entering into the deal.

    He said the GNPC’s explanation that it wants to become a major operator in the production of oil within Ghana was “plain nonsense” as it has had past opportunities.

    Mr Simons, further noted that the GNPC, via subsidiaries, had not proven to be capable of bearing fruits in operations at South Deep Water Tano (SDWT) and the Offshore South West Tano Block (OSWT).

    Source: The Herald

  • Ghana determined to avoid ‘Energy Transition curse’ – Dr Amin

    Ghana determined to avoid ‘Energy Transition curse’ – Dr Amin

    Government of Ghana says it is committed striving to canvass coherent arguments in the wake of the global energy transition advocacy to avoid the country’s hydrocarbon assets from being stranded.

    The effects of the transition, ranging from revenue losses, underinvestment in hydrocarbons and the huge cost of adjustment, will only deepen the already existing schism and further ensure that Africa is left behind the rest of the world.

    A Deputy Energy Minister has said even though Africa is the least emitter, it is certainly going to suffer the grave consequences of the transition.This, he described as unfair, inequitable and unjust.

    “Our governments have, therefore, been looking for options to generate oil and gas wealth and to improve on the management of this wealth through good governance to support our development efforts. Oil and gas resources have, therefore, been viewed today as a ‘shot in the arm’ promising prosperity”, Mohammed Amin Adam said when speaking at the “Around the world series” programme on the margins of the 2022 Offshore Technology Conference on the theme, “West Africa’s Oil and Gas in search of investment in the wake of Energy transition” in HoustonTexas, USA.

    “The unfortunate realities in several West African countries, particularly in the resource-rich areas is the fact that the standard of living of the people is normally not commensurate with the wealth of resources extracted, leading to social and political agitation in several instances.”

    In the wake of the above, Dr Amin Adam argued that efforts to push Africa into the transition corner at the same pace as the West, is not just counter-productive but an affront to the concept of global development.

    He said Europe is looking for new gas suppliers due to geopolitics and the desire for energy independence from Russia and indicated that Africa holds significant levels of undeveloped oil and gas reserves, which could prove strategic for European countries compared with US gas, given the proximity to Europe.

    He canvassed, therefore, that investments in Africa could provide answers to Europe’s gas demand of between 150-190 billion cubic metres annually that Russia has usually supplied.

    The deputy minister said Ghana wants to own the process and to transition at its own pace, thus, to this end, the government of Ghana has established a National Energy Transition Committee to develop the energy transition policy and strategy to guide our steps towards a net-zero future.

    “We want to continue oil and gas production, scale-up renewable energy, integrate nuclear energy in our energy mix and in future produce blue and white hydrogen,” he noted.

  • GOIL, Fan Milk others given up to May ending to file Unaudited Financial Statement

    GOIL, Fan Milk others given up to May ending to file Unaudited Financial Statement

    The Ghana Stock Exchange (GSE) has granted some listed companies extension for the submission of their Unaudited Financial Statement for the period ended March 31st, 2022.

    The firms; Fan Milk, GOIL, ESLA PLC and SIC Insurance have between May 13th to June 15th, 2022 for the submissions of their unaudited financial statements.

    GOIL have up till May 13th, 2022 to submit its unaudited financial statement, whilst Fan Milk, SIC Insurance and ESLA have up till May 15th, 2022; June 15th, 2022 and May 9, 2022 to do so.

    Also, the GSE has granted further extension to aluminum smelter, ALUWORKS, for the submission of the Audited Financial Statements for the year ended December 31, 2021.

  • Gov’t discusses ways to exempt investment transactions from E-Levy

    Gov’t discusses ways to exempt investment transactions from E-Levy

    Adnan Adams Mohammed

    The Securities and Exchange Commission (SEC) has begun working with the Ministry of Finance (MoF) regarding the potential exemption of investment transactions from the Electronic Transaction Levy (E-Levy).

    It however wants capital market operators to strictly adhere to guidelines issued by the Ghana Revenue Authority over the implementation of the E-Levy until such exemptions are granted.

    The move by the SEC to get exemption of investment transactions from E-Levy is to prevent reduction in investment transactions.

    “It is estimated that by the start of the second phase (July 1, 2022) of the modified phased-approach adopted by the GRA, charging entities would have completed their integration with the GRA E-Levy Management System (Common Platform), thereby facilitating the complete identification of individuals, verification of daily threshold and exemptions across the various platforms of the Charging Entities”, it pointed out in a statement.

    The SEC however urged all capital market operators to update their customers’ investment records using their individual National Identification Card (Ghana Card).

    It also wants the capital market players to ensure full compliance with the directive issued by the SEC in July 2020 on Trust Accounts’ opening, maintenance and operation SEC/DIR/003/07/2022 which shall become a key ingredient in seeking potential exemptions for the market.

  • Economy to be among 12 best economies in  Sub-Saharan Africa in 2022

    Economy to be among 12 best economies in  Sub-Saharan Africa in 2022

    Adnan Adams Mohammed

    The International Monetary Fund (IMF) has projected that Ghana’s economy is likely to rank 12th among 49 Sub-Saharan African nations in 2022 with an expected growth rate of 5.2%.

    Ghana is expected to jointly rank 12th position with Cape Verde among league of Sub-Saharan African economies. In West Africa, the nation will place 6th again with Cape Verde.

    Although the expected growth of 5.2% is the lowest among other economic researchers, the World Bank has projected a growth of 5.5% for 2022. Also, the parent company of Stanbic Bank, Standard Bank has predicted an economic growth rate of about 6.2% in 2022 and 6.8% in 2023 amidst tough times for the Ghanaian economy.

    The Word Bank in its latest report said the government’s significant progress in vaccinations and the further easing of COVID-19 restrictions will stimulate demand and supply within the economy. But, it pointed out that the country’s ability to tap the Eurobond market may further diminish, whilst the foreign exchange reserves could remain under pressure unless the government acquires alternative sources of external financing.

    “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.”

    The 5.2% expected expansion in the economy in 2022 will be slightly lower than the Gross Domestic Product (GDP) growth rate recorded in 2021.

    In 2021, the IMF projected a growth rate of 4.2%, but the economy expanded by 5.4%, according to provisional estimates from the Ghana Statistical Service.

    This was as a result of strong growth in the Services sector (9.4%), particularly Information, Communication and Technology (33.1%) and Agriculture (8.4%), particularly the Fisheries (13.4%) sub sector.

    In 2023, the Fund forecasts a growth rate of 5.1%, which will place the country in the 21st position in the league of African economies.

    This is due to the expected strong growth rate by most African economies.

    In 2022, Niger will become the fastest growing economy in Sub Saharan Africa with a growth rate of 6.9%, whilst Senegal will lead the league of African economies in 2023 with 9.2% in the economy.

    Meanwhile, Sub-Saharan Africa is expected to grow at a rate of 3.8% in 2022 and subsequently 4% in 2023.

    COUNTRY GDP RANKING

    Niger                 6.9% 1st

    South Sudan 6.5% 2nd

    DR Congo 6.4% 3rd

    Rwanda                6.4% 3rd

    Mauritius 6.1% 5th

    Equat. Guinea 6.1% 5th

    Coted’lvoire 6.0% 7th

    Benin                 5.9% 8th

    Kenya                 5.7% 9th

    The Gambia 5.6% 10th

    Togo                5.6           10th

    Ghana                 5.2% 12th

    Cape Verde 5.2% 12th

  • Don’t Hide Behind The Bible For Credibility, The Battle Has Always Been Yours

    07/05/22

    By: Godwin Ako Gunn

    There are a lot of things in the Bible that inspire people and it may not be salvation. A lot of people have been swindled in the name of God, and someone wants to swindle you in the name of love for the word of God. Let’s see some crimes that can inspire the wicked.

    *TAKING A PERSON’S WIFE AND TAKING HIS LIFE*

    David was nearly killed in battle and the army generals made a resolution never to allow David to go to war. They provided him with all the luxury he needed in his house. But idleness and  not being interested in waging war against poverty, unemployment etc, made him buy a drone to be flying on the roof of his house. This drone landed him in Uriah’s bathroom, when he was at the war front defending the nation of Israel and the wife was having her bath.

    The story didn’t end there, because the bathing in the air had brought shame to king David, he had to recall his general Uriah, from Canada to cover up his shame, but when he refused, he paid dearly on the Ada road.

    *NEPOTISM* 

    Nepotism is accepted in the bible, because they ruled as Chiefs and Kings. Members of the family and friends became advisers, ministers, negotiators, judges etc. Some persons, inspired by this, have extended it to our democracy. They will choose their EC chairpersons, their auditor general, their supreme court judges etc. They forget to appreciate that, this same nepotism, destroyed the house of David.

    *RULING WITH IRON FISTS*

    A foolish descendant of David, Jeroboam who didn’t learn anything about governance because ones his father has been a king before, it is bound to happen.

    He had no plans, just a sense of entitlement, he felt it is his turn!!! He found it absurd when his citizens complained of fuel price hikes, increase in the price of tomatoes and garlic, taxes like the sanitation tax, covid tax, E-levy etc, he boldly looked into their eyes and said “My father laid on you a heavy yoke; I will make it even heavier. My father scourged you with whips; I will scourge you with scorpions”. It’s sad, the things that inspire people in the bible.

    *KEEPING A GARDEN IN FRONT OF YOUR HOUSE*

    Naboth’s family lived in peace until president Ahab became king. He asked Naboth for his vineyard to plant flowers and herbs because it was close to his house. When he refused, his wife arranged for Naboth to be stoned to death and they took the land. They beautified it with metal fabrications, herbs and trees. He even imported special lights from Syria, Palestine and the Hittites. The bible can inspire you to acquire people’s land and hotels compulsorily just because its close to your house.

    Today *CSIR* are fighting for lands earmarked for their research works. The government is plotting those land for family and friends. Ministers and metropolitan chief executives have all turned a blind eye on their calls for intervention because it serves their interests.

    Don’t get me wrong, I believe in the word of God, but I fear people who can even scam God. Faith based slogans like; the battle is the lord’s, Insha Allah and many others are their guiding quotes.

    No one can see the construction of a man’s mind in his face. The bible has also admonished us not to judge. I can only advise for us to be wise as a serpent, as we pray for Better days ahead.

    *Kun fa Yakun*

  • JM Supports the Aged/Needy in Awutu Senya East

    JM Supports the Aged/Needy in Awutu Senya East

    The National Zango Caucus on Wednesday, 27th April, 2022 continued H. E. John Dramani Mahama’s Ramadan tour of the zangos.

    In a short ceremony attended by mostly the aged and physically challenged at the constituency party office, the National Executives of the Zongo Caucus namely, Alhaji Mohammed Cole Younger, Alhaji Mustapha Abubakar and Alhaji Mohammed Naziru, presented some items to the participants on behalf of H. E John Dramani Mahama, to enable them finish the Ramadan with ease.

    The beneficiaries of JDM’s kind gesture at ASEC are, a popular visually impaired NDC communicator by name Sulley ‘nokware asa’ and Madam Zainab among other aged men and women in the said constituency.

    The Constituency Executives for ASEC led by the vice chairman (Hajia Zainab), the Constituency Zongo Caucus Coordinator and the  youth wing were all present at the brief ceremony.

    Alhaji Cole Younger who spoke at the ceremony entreated the beneficiaries to countinue to pray for mother Ghana, the NDC and H.E John Dramani Mahama.

    In her vote of thanks, the vice chairman for the Awutu Senya East Constituency Hajia Zainab thanked H.E John Dramani Mahama for remembering their orphan constituency in this difficult time and promised to keep the former President and the NDC in their prayers.

  • NDC sends message of solidarity Ghanaian workers to mark May day

    NDC sends message of solidarity Ghanaian workers to mark May day

    Read Full Statement:

    Today is May Day, a day celebrated the world over in solidarity with all workers.

    Workers are the engine of societies, for it is their toil and sweat that provide all the necessities of life. In the labour of workers lies the fate of every community everywhere in the world.

    We in the National Democratic Congress take this opportunity to salute all workers for their tireless and continuous efforts that contribute to the building of our beloved country Ghana. We are especially proud of the special relationship that we have cultivated with workers over the years.

    In this vein, we call on the Akufo-Addo government to address the numerous challenges being faced by the workers of Ghana, and, in particular, to ensure that the hardships imposed on all by the incompetence of the government, are ameliorated by prudent measures designed to lessen the cost of living.

    We consider it particularly cruel and an affront to the sensitivities of all Ghanaians, that the Akufo-Addo government chose to impose the unpopular e-levy tax on Ghanaians on May Day. We know, from all the surveys conducted on this issue, that about 85%of all Ghanaians are opposed to this obnoxious tax. We now have a

    government that has not only lost its way, but is insensitive to the suffering of the people of Ghana.

    As we join all workers to mark this auspicious day, we want to assure them that upon the accession to power by

    the NDC in January, 2025, the pains and sorrow of the workers of Ghana will receive our utmost focus and attention.

    We know that when workers are happy and satisfied at their workplace and at the end of the month, this country’s level of productivity will increase by leaps and bounds, and all our citizens will be the beneficiaries.

    As we celebrate our workers for their commitment and dedication to duty, we also hail them for their unflinching

    love for Ghana.

    Ghana workers, AYEKOO.

    LONG LIVE THE WORKERS OF GHANA!

    LONG LIVE THE NDC!

    LONG LIVE GHANA!!!

    ISSUED ON 1st MAY, 2022

    ………. (signed)

    (HON. SAMUEL OFOSU-AMPOFO)

    NATIONAL CHAIRMAN

  • Job unavailability on the rise

    Job unavailability on the rise

    By Elorm Desewu

    Job availability in the country has declined significantly by 8.4 percent for the first two months of 2022. The number of jobs advertised in selected print and online media, which partially gauges labour demand in the economy, decreased in February 2022 relative to the corresponding period a year ago.

    Cumulatively, the number of jobs advertised in the first two months of 2022 decreased by 4.4 percent to 5,370 from 5,618 recorded in the corresponding period of 2021. The year-on-year decline in the number of jobs advertised reflected some of the difficulties faced by businesses as a result of the coronavirus pandemic.

    In total, 2,746 job adverts were recorded as compared with 2,999 for the same period in 2021, indicating a decline of 8.4 percent year-on-year. On a month-on-month basis, the number of job vacancies in February 2022, however, increased by 4.6 percent.

    Total number of private sector SSNIT contributors, which partially gauges employment conditions, improved to 828,061 up by 2.4% year-on-year in January 2022 compared with 808,301 for the same period in 2021. On a month-on-month basis, total number of private sector SSNIT contributors decreased by 4.1 percent from the 863,094 individuals recorded in December 2021.

    The Bank’s updated Composite Index of Economic Activity (CIEA) recorded an annual growth of 4.2 percent in January 2022, compared with 13.9 percent recorded in the corresponding period of 2021.

    The consumer and business confidence surveys conducted in February 2022 revealed a softening of sentiments with business confidence declining by a greater extent. The Consumer Confidence Index eased from 88.1 in December 2021 to 87.4 in February 2022 on account of the persistent increases in fuel prices, increases in transportation fares and rising inflation.

    Businesses were concerned about the impact of these on macroeconomic conditions as well as on their short-term targets and profitability for 2022. Consequently, the Business Confidence Index dipped from 98.4 in December 2021 to 88.8 in February 2022.

    Real sector activity is expected to continue to recover, although still below potential. In the outlook, activity is expected to improve in the medium-term on the back of positive real sector expectations and rising foreign demand. However, tighter monetary conditions and the on-going fiscal consolidation are likely to moderate the pace of the recovery in the forecast horizon.