EIU Archives - Wontumi Online

06 Jun

EIU Predicts Persistent Stronger US Dollar; One Dollar Equals GH¢14.90

wontumionlineBusinessCEDI, dollar, Economy, EIU

The US dollar remains close to an all-time high in real effective terms. According to the Economist Intelligence Unit, the remarkable resilience of the greenback is a reflection on the strength of the US economy, which has defied high interest rates and market predictions (a record-long period of yield curve inversion indicates so far unmet expectations of a major slowdown). “High US policy rates and, more recently, investor repositioning in anticipation of a later start to US monetary easing have provided a large degree of support for the currency. However, the dollar has rarely been so strong relative to interest-rate…

21 Nov

Cedi To Record single-digit depreciation Against Dollar In 2024 – EIU

wontumionlineBusinessCEDI, Cocoa Syndication Loan, EIU, imf

The Ghana cedi could record a single-digit depreciation against the US dollar in 2024, The Economist Intelligence Unit has disclosed in its 2024 Africa Outlook Report. According to the UK-based firm, the cedi will benefit from the International Monetray Fund Programme. It stated that only five African countries (Egypt, Sudan, Ethiopia, Angola, and Zimbabwe) will experience double-digit depreciation of their currencies in 2024. “The Central and West African countries that make up the CFA franc zone will experience currency appreciation in 2024. The currencies of most other African countries will depreciate next year, with five experiencing double-digit depreciation: Egypt, Sudan,…

20 Sep

Ghana, 6 Others To Struggle With Debt-Servicing Burdens – EIU

wontumionlineBusinessdebt-servicing, Debt-to-GDP ratio, EIU

The Economist Intelligence Unit has said that Ghana, Tunisia, Egypt, Congo-Brazzaville, Zambia, Zimbabwe and Mozambique will grapple with debt-servicing burdens that eat up a substantial share of their revenue in 2023 In its Updated 2023 Africa Outlook Report, the EIU said African governments have ramped up their borrowing—domestically and internationally—and public sector debt ratios (relative to GDP) have pushed back towards the highs last seen in the early 2000s just before the enormous debt restructuring of 2005, implemented under the umbrella of the heavily indebted poor countries (HIPC) initiative. “Ghana, Tunisia, Egypt, Congo-Brazzaville, Zambia, Zimbabwe and Mozambique have enormous amounts…

20 Sep

EIU Revises Cedi Depreciation To Dollar Forecast To 23% In 2023; Currency To Remain 3rd Weakest In Africa

wontumionlineBusinessCEDI, CEDI DEPRECIATION, EIU

The Economist Intelligence Unit (EIU) has revised its projected depreciation of the cedi to dollar in 2023 to about 23.0%, from the earlier 30.0%. According to its 2023 Updated African Outlook Report, this will place the local currency as the third weakest in African this year. That was a business desk report According to the UK-based firm, the cedi will depreciate lower than the 44.0% recorded against the American greenback in 2023. Presently, the local unit has declined in value by a little above 22% to the world’s most important currency, according to data from the Bank of Ghana. This…

03 May

EIU Expects Inflation To End 2023 At An Average 38.1%

wontumionlineBusinessEIU, Inflation

Economist Intelligence Unit (EIU) expects inflation to end the year at 38.1 percent on the average, despite a slowdown in monthly inflation over most of the period. According to the UK-based firm, the upward domestic price pressures will be spurred in part by pass-through effects of sustained depreciation and the introduction of new taxes, including a rise in the Value Added Tax (VAT) rate and excise duties. “We expect inflation to rise further on average in 2023, to 38.1%, despite a slowdown in monthly inflation over most of the period, with inflation having declined to a (still very high) annualised…

03 May

Ghana’s Current Account Deficit To Narrow To 1.9% In 2023 – EIU

wontumionlineBusinesscurrent account, EIU, services account, Trade Surplus

Ghana’s current account deficit is expected to narrow to 1.9% of Gross Domestic Product in 2023, UK-based Economist Intelligence Unit has revealed. It is also forecasting a further drop in the current account to 1.1% in 2024 as international prices for refined fuel imports decline from their 2022 peak, whilst contracting domestic demand in 2023 and more stringent regulations on imports suppress the import bill. The deficit will however widen in 2025-27, reaching 2.7% of GDP in 2027, as the primary income deficit grows. “Although export earnings from gold and cocoa (which are among Ghana’s major commodities) will rise, revenue…

02 May

Cedi To Depreciate 30% To Dollar In 2023 – EIU

wontumionlineBusinessCEDI, dollar, EIU

Economist Intelligence Unit (EIU) is predicting a 30% depreciation of the cedi to the dollar in 2023. This is however lower than the about 44% depreciation of the local currency in 2022. Disclosing this in its 2023 Country Report on Ghana, the UK based firm said it expects the cedi to depreciate significantly this year. “We now expect the currency to weaken to ¢12.46:US$1 at end 2023 (from ¢10.95:US$1 as at mid-April).” It further said that the cedi depreciation will be driven by increased demand for hard currency due to high import prices, inflation, capital flight, rising profit repatriation by Ghanaian-based multinationals and weak investor sentiment in the face of the…

30 Apr

EIU Is Rather Telling ‘Stonehearted’ NDC To Change John Mahama- Awudu Mahama

wontumionlineNews, TrendingEIU

Managing Editor of the Custodian Newspaper, Mr. Awudu Mahama has weighed in on a report by the United Kingdom-based Economic Intelligence unit (EIU) offering a different view from claims by the unit that they expect the National Democratic Congress (NDC) to win the 2024 elections. He opined that despite the prediction by the EIU, winning the 2024 elections in Ghana has more to do with the political party with a good strategy. “Political party with good strategy will win the 2024 elections”, he said as he hammered on the cautions EIU has spelled out to the NDC before they can…

28 Dec

Cedi To Depreciate By About 22% In 2023 – EIU

wontumionlineBusinessAfrica Outlook 2023 Report, CEDI, dollar, EIU

UK based Economist Intelligence Unit (EIU)is predicting about 22% depreciation of the cedi to the dollar in 2023. This will rank the local currency as the 3rd weakest performing currency on the African continent, according to its Africa Outlook 2023 Report. The EIU expects the exchange-rate weakness to continue into 2023, albeit to a lesser degree. “Most African currencies have lost substantial value against the US dollar during 2022 and we expect exchange-rate weakness to continue into 2023, albeit to a lesser degree”. It maintained that the currencies of the troubled states of Sudan and Zimbabwe will be among the weakest…

17 Nov

Ghana 4th Biggest Sub-Saharan African Importer Of China Goods In 2021 – EIU

wontumionlineBusinessChina, China Goods, EIU, Ghana

Ghana was the 4th largest importer of goods from China in Sub-Saharan Africa in 2021, UK based Economist Intelligence Unit has revealed. The country’s imports from China were estimated at 5% of total imports from Sub-Saharan Africa. The report said there is a broad range of drivers that are likely to push more Chinese trade and investment toward Africa in the decade ahead. Ghana’s imports from China were estimated at about $2 billion in 2021. The imports ranged from Fast Moving Consumer Goods, electrical equipment, and construction materials. However, the country did not make it among the top African countries that…