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The Ghana International Trade and Finance Conference (GITFIC) has predicted that there will be at least two to three per cent reduction in debt to Gross Domestic Product (GDP) ratio this year, 2022.
“We expect that experts in the field are learning from their experiences on how to reduce the cost involved in government financing the policy through internally generated funds alongside other policies to curb the borrowing power.”
A research carried out by GITFIC and copied to the Ghana News Agency in Accra said the debt to GDP ratio had received a consistent increase for over a decade in Ghana and the implementation of the holistic free senior high school policy in 2017 against the existing “progressive free senior high school” in part added to Ghana’s huge debt to GDP in recent years.
Signed by Mr Ekow Bediako, Deputy Research Fellow, Policy and Advocate in charge of Finance and Economy, the research also expected an evident revival in Ghana’s growth as the economy was gradually improving from the shocks of COVID-19 and its related concomitant effects.
“As a well-diversified economy, Ghana’s extractive sub-sector (oil and Gold) and cocoa still remains reliant for revenue generation that anchors growth. The crosscutting production activities also rely heavily on flow of electricity supply.
“With favourable expectation in commodity price shocks and improved flow of electricity generation and supply, GITFiC projects an upward increase of GDP between 4.9 to 6.3 per cent showing a surge given the previous year’s data and the various measures put in place by the government to raise revenue for productive activities in the economy.”
On employment, the research said the 4.53 per cent unemployment rate in 2020 could be partly attributed to the COVID-19 pandemic and the gradual relieve from the effects of the pandemic in Ghana, the employment policies highlighted in the 2021 budget to be implemented in 2022, among other measures to be implemented, should unemployment rate not decrease beyond the hovering figure of 4.1 in 2018 and 2019, GITFiC projects maximum 4.4 per cent unemployment rate in 2022.
GITFIC according to the research per the sterilized facts highlighted is expecting a further reduction in inflation given that 2021 saw a reduction showing considerable revival from the pandemic shocks internationally and domestically.
“Ghana is still in the right direction with considerable revival from the shocks of the pandemic and other challenges hoping that the increase in taxes in various sectors in Ghana’s economy will reflect in developmental projects.”
The Ghana International Trade & Finance Conference (GITFiC) is a reputed Private Sector Initiative working closely with both the Private and Government Sectors within the sub-region, and the Continent at large to drive the Continental Free Trade Agreement (CFTA), broader Trade & Finance development agenda of the continent as defined in the A.U’s Agenda 2063, global trade issues, and other Trade, Trade-Finance, Logistics and Finance Agreements.