According to the Institute for Fiscal Studies (IFS), Ghana’s economic problems are expected to get worse if it keeps using domestic finance for the national budget. IFS claims that because the government is unable to access the Euro bond market, the private sector is facing fierce competition for loans to finance the budget, which is expected to result in a lack of investible capital for the private sector.
Acting Executive Director for IFS Dr. Said Boakye urged resilient measures to spur economic growth during a news briefing on a review of Ghana’s current fiscal and macroeconomic performance.
He stated that there is reason for concern regarding the increased domestic financing of the national budget that is currently occurring as a result of the country’s inability to enter the Euro bond market because of the death issue. The government is now more fiercely vying with the local private sector for loan able cash as a result.
According to Dr. Boakye, this would probably result in a lack of capital that the private sector may invest in, which will keep interest rates high and perpetuate the existing slow economic development and high unemployment rates.
SOURCE: https://dew360.net/
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