The change in the structure of the economy tops the discussions at the symposium


According to the speakers, a change in the structure of the economy would help solve the persistent economic difficulties the country has been going through and forced the government to seek a bailout from the International Monetary Fund (IMF).

The speakers, the Minister of Information, Kojo Oppong Nkrumah; Dr John Kwakye, Research Director at the Institute of Economic Affairs, Professor John Asafu-Adjaye, Senior Fellow and Research Director at the African Center for Economic Transformation and Tsonam C. Akpeloo, President of the Greater Accra Region of the Association of Ghana Industries, spoke at a symposium called 3 News Business Forum.

Hosted by 3News, an online affiliate of Media General, it was themed “The Road to the IMF: Achieving Low Inflation and Macroeconomic Stability, The Way Forward.”

Nkrumah said the current economic challenges facing the country were structural and the effects of the COVID-19 pandemic and not mismanagement, adding that the economic challenges facing the country had been exacerbated by the war. Russian-Ukrainian.

The Minister of Information explained that in 2020 the government had to spend more on procuring personal protective equipment to save lives in view of the outbreak of the coronavirus pandemic.

He said government spending did not match revenue, saying the country’s tax on gross domestic product currently stood at 12%, which was below the sub-Saharan average of around 16%.

The Director of Research at the Ghana Institute of Economic Affairs, Dr. John Kwakye, observed that economic challenges could be attributed to exogenous and endogenous factors.

He said the government and the Bank of Ghana must come together to launch a program to bring the rising inflation and cost of capital under control.

This, he said, would make the cost of credit cheap to help the private sector borrow and grow their businesses.

The senior researcher and research director of the African Center for Economic Transformation, Professor Asafu-Adjaye, said that although the country had recorded modest growth since 2017, the growth was “not enough”.

He said the country needed deep growth, explaining that there was a need for diversification of the country’s economy, export competitiveness and improved productivity.

Professor Adjaye observed that the increase in the monetary policy rate made the cost of credit expensive.

He called for policies and incentives to boost local production, saying a 1% increase in gross domestic product would lead to a 3% drop in inflation.

Greater Accra Chairman of the Association of Ghana Industries, Tsonam C. Akpeloo called for a comprehensive policy to support private sector growth.

Mr Tsonam expressed concern about what he described as the “dollarization of the Ghanaian economy”, where services and products were priced in dollars, and said the practice was not good for the development of the country.

He said the private sector should be supported to be able to produce more for exports to attract more foreign exchange to the country.

Francis Doku, managing director of Media Group Television Limited, a subsidiary of Media General, said in his remarks that the show should contribute to the discourse on the IMF program.

He said the views expressed during the program would be compiled into a document and presented to the government.


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