Pulse.com.gh examines the number of times the government has assured Ghanaians it will revive its ailing economy.
Economy to bounce back – Ken Ofori-Atta reacts to cedi depreciation
Ken Ofori-Atta said the demand for imports and uncontrolled exchange had led to the depreciation of the cedi.
He hopes that the slide will stop when the government reaches a staff agreement with the International Monetary Fund (IMF) for economic support this year.
According to Ken Ofori-Atta on Accra-based Asaase radio, “…It’s quite confusing to see where it’s going, of course, people import for Christmas and maybe there’s a rush for (dollars) but I expect that we will also finish with the Fund (IMF), which will lead. for the disbursement of funds early next year to do,”
Adding additional support from countries such as Germany and France will provide funds for these countries to prevent the slide of the cedi.
“The support we receive from countries like Germany and France, we are sure that we will get the necessary resources, so we want people to know not to panic or rush to force the currency, I think it is unnecessary and we are in good condition “.
Presenting the 2023 Budget in Parliament, the finance minister stated that the reduction in the value of the cedi was caused by the rush of dollars to import Christmas goods.
“The demand for foreign exchange to support the demand for unwanted imports is damaging and reducing the value of the cedi. This has led to a depreciation of the Cedi that has lost about 53.8% since the beginning of this year, compared to an average of 7% annual depreciation of the Cedi between 2017 and 2021.
However, Mr. Ofori-Atta, stated that the Bank of Ghana will continue to monitor inflationary developments and respond appropriately to contain price pressures.
According to him, the Monetary Policy Committee will focus on using the level of monetary policy to, among other things, contain inflationary pressure.
Akufo Addo assured the restoration of Ghana’s economy
President Nana Addo Dankwa Akufo-Addo has assured the government’s determination to fix the challenges facing the country’s economy.
According to him, the New Patriotic Party has competent men and women, programs, and good intentions to complete it.
Akufo Addo in his last national speech said that securing the IMF bailout will support the implementation of the Post-Covid-19 Program for Economic Growth and additional funds to support the 2023 Budget and development programs.
This he said would give more confidence in the steps taken by the Government to stabilize and grow the economy, as well as raise our currency.
He expressed high ambitions for the country, “To restore and maintain debt sustainability, we plan to reduce the total public debt to GDP ratio to approximately fifty-five percent (55%) in current values by 2028, by servicing our external debt at no more than eighteen percent. (18%) of our annual revenue also in 2028.
We are committed to improving our revenue collection efforts, from the current tax revenue to a GDP ratio of thirteen (13%) to between eighteen and twenty percent (18-20%), in order to be competitive with our peers in the West African Region. GRA launched various measures to support this better revenue mobilization. We must all do our patriotic duty, and support the GRA in this exercise.
We aim to restore and maintain macroeconomic stability over the next three (3) to six (6) years, with a focus on ensuring debt sustainability to promote sustainable and inclusive growth while protecting the poor.
The economy will pick up quickly – Bawumia
Vice president Mahamudu Bawumia also acknowledged Ghana’s economic downturn but promised a speedy recovery.
He said African countries are recognizing the importance of intra-continental trade through the African Continental Free Trade Area (AfCFTA).
According to him, there are endless opportunities to explore, “There is a lot of opportunity and potential to be realized,” said.
Bawumia said that the measures taken by the government to save the economy will stabilize the current economic turmoil.
“We are trying to solve these problems in the context of a tight and tight budget. On the monetary side, the central bank is trying to contain inflation through several interest rate increases.
“Finally, you overcome this crisis by expanding your production. If there is a food crisis, then we must increase food production,” said.
The government’s focus is on building a resilient economy – John Kumah
The Deputy Minister of Finance, John Kumah has signaled that the government is working on various programs to make the transition to a low carbon economy which is essential to fight climate change and build a resilient economy.
According to him, the government’s focus is to create a domestic Green Bond Market in Ghana, implement Article 6 of the Paris Agreement, engage the private sector to expand green investment, promote the development of the green private sector, and use the skills and also the knowledge of various players to deal with change- climate change.
Dr. Kumah disclosed this while representing Finance Minister Ken Ofori Atta at the Private Investment for Climate Conference held in the Republic of Korea under the Global Climate Fund (GCF).
Ghana has reached staff-level approval to receive $3 billion under the IMF’s expanded credit facility program to strengthen its finances and regain access to global capital markets.