<\/p>\n
Jeff Gable addressing the audience <\/em><\/strong><\/p>\n JEFF GABLE, Chief Economist at ABSA, has indicated that the continuous introduction of subsidies by governments in the midst of global economic challenges will prolong the effects of inflation.<\/p>\n Mr Gable, who is also head of the Fixed Income Currency and Commodities (FICC) Research, said governments in Africa must rather focus on slowing down demand for imported products rather than subsidising the cost.<\/p>\n \u201c[In Nigeria for instance], almost all of the Federal Government\u2019s funds that are to be set aside to pay for new hospitals, schools, construct roads and energy infrastructure, are used to subsidise petrol\u2026 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\u2026 Some of the subsidy programmes that exist here actually prolong the [inflation] situation,\u201d he said.<\/p>\n Mr. Gable was peaking at the Citi TV<\/em>, ABSA Bank Ghana and ISSER\u2019s Cedi Summit in Accra yesterday.<\/p>\n Commenting also on the challenges and perspective of the global economy, particularly Russia\u2019s invasion of Ukraine and the Covid-19 pandemic, he said the situation is pushing governments to use funds reserved for social and economic development to fund price subsidies.<\/p>\n He was, however, quick to add that some subsidies remain important as part of the strategies to address inflation challenges adding that, there is still uncertainty at the global level about inflation slowing down.<\/p>\n \u201cEconomists are moving the inflation forecasts up and up rapidly\u2026 [Economists are] uncertain whether any of these things will get better,\u201d he added.<\/p>\n BY Jamila Akweley Okertchiri<\/strong><\/p>\n \n\t<\/div>\n","protected":false},"excerpt":{"rendered":" Jeff Gable addressing the audience JEFF GABLE, Chief Economist at ABSA, has indicated that the continuous introduction of subsidies by governments in the midst of global economic challenges will prolong the effects of inflation. Mr Gable, who is also head of the Fixed Income Currency and Commodities (FICC) Research, said governments in Africa must rather […]<\/p>\n","protected":false},"author":1,"featured_media":1136248,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[9887,18235,227,6005,19146,17593],"class_list":["post-1136246","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-continuous","tag-gable","tag-inflation","tag-jeff","tag-prolong","tag-subsidies"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1136246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1136246"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1136246\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1136246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1136246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1136246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}