• Results on the local bourse was mixed at the end of last week's session as the GSE-FSI moved up by 0.68% while the GSE-CI moved south with a drop of -0.30%.
• Government surpassed its fundraising target by about a quarter, raising GHS 838.06m form short tenor securities as against a target of GHS 709.00m.

ECONOMIC SCOOP

Ministry of Finance projects Government's expenditure to total GHS 27.43b in the first quarter of 2021

• The Minister of Finance disclosed this estimate for expenditure during the presentation of Expenditure in Advance of Appropriation to Parliament on Wednesday 28^th October 2020.
• Revenue and Grants for the period is expected to total GHS 13.3b.
• The Ministry forecast yearend 2021 GDP growth to be 5.70% and fiscal deficit at 8.30%.
• The Government intends to source between US$ 3b and US$ 5b to support the 2021 budget and liability management.

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• Gains in GCB and MTNGH were not enough to stop declines on the GSE-CI and the GSE-FSI as EGH and SOGEGH posted slides of 8.33% and 7.14% respectively.
• At last week's auction Government exceeded its target of GHS 1,027.00m by 4.52% as a total of GHS 1,073.39m was raised through 91 and 182-Day Bills.

ECONOMIC SCOOP

Finance Minister to present Government’s spending budget for Q1 2021 on Wednesday 28^th October 2020

• The Minister of Finance is expected to present the Expenditure in Advance of Appropriation to Parliament on Wednesday 28^th October, 2020, outlining Government’s spending projections for the first quarter of 2021.
• This is a standard presentation to Parliament every election year aimed at forestalling transitional challenges the next couple of months after elections.

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• The impact of a drop in EGH's price proved weightier against four gainers on the GSE, as the two indices recorded declines in the week.
• Government missed its target of GHS 1,000.00m from the issuance of a new 5-Year Bond through which it raised GHS 616.30m.

ECONOMIC SCOOP

Further easing in food prices brings inflation rate down to 10.40%.

• Food inflation which accounted for 47.60% of inflationary pressures in September slid from 11.40% in August 2020 to 11.20% in September 2020, causing overall inflation to drop from 10.50% to 10.40%.
• Likewise, non-food inflation dipped from 9.90% in August 2020 to 9.80% in September 2020.
• Greater Accra witnessed the highest inflation rate of 14.30%, while the Upper West Region recorded the lowest inflation rate of 1.30%.

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• The GSE-CI and GSE-FSI recorded week-on-week gains of 18.66 points and 23.39 points to keep the local bourse on a two-week positive run. Similarly, SCB maintained its upward stride for a third week running.
• Government raised total funds of GHS 919.34m from 91 and 182-Day Bills issuances. Book building is expected to start on Wednesday 14th October 2020 for a new 5-Year Bond.

ECONOMIC SCOOP

World Bank forecasts GDP contraction of -3.30% for Sub-Saharan Africa leading the region into recession for the first time in 25 years.

• The contraction is expected to be deep for countries with high dependence on extractive resources such as South Africa, Nigeria and Angola.
• Metal dependent countries are expected see an average decline of 6%, while the GDP of oil dependent countries is expected to come in around -4%.
• On the other hand, while the growth of non-resource dependent countries i.e. Cote d’Ivoire, Ethiopia, Kenya etc. is expected to slow down, the World Bank forecasts it to remain positive.

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