ABSA Bank is the largest consumer bank in South Africa
Corporate and investment wing of ABSA Bank limited, ABSA capital has predicted Ghana’s revenue from the commodities it exports will experience a massive boost this year as world commodity prices soar.
Despite a drop in prices of commodities such as cocoa and gold in the past months, analysts are optimistic world prices will in a few months increase.
Ghana is a major exporter of cocoa and gold and thus an increase will have a positive impact on its revenue.
Principal at ABSA capital, Riddle Markus tells Citi Business News
Ghana is likely to see an increase in its revenue this year.
"With our positive outlook on commodity prices I really do think it will be a good pillar of growth for Ghana.
There is a deliberate effort to increase cocoa production so that is a positive for the future and also gold there are various projects underway and I believe will push up gold production and that will be an important pillar of support for the economy." he said.
Still on predictions, there is a gloomy picture for the country’s inflation however.
ABSA predicts the country’s inflation will reach double digits at the end of the year.
"I do see inflation going up above 10 percent over the next couple of months but the outlook for next year is much more stable and I don’t see inflation reach levels well above this 10 percent levels next year." he said.
By: Vivian Kai-Mensah/citifmonline.com/Ghana