Economy: Let’s see ourselves as brothers coming out of a hole – MP

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The Member of Parliament for Asante-Akim North, Andy Appiah-Kubi, has said all Ghanaians must recognize that the country has been hit by international crisis hence the challenges the economy is going through at the moment.

He said the people must see themselves as brothers coming out from a hole.

“We have to see ourselves as brothers coming out of a hole. We have been hit by an international phenomenon so we need to work together,” he said on the Key Points on TV3 Saturday July 23.

Some analysts have called on the government to take critical decisions t tackle the challenges facing the economy.

For instance, in the view of the Chie Operations Officer at Dalex Finance, Mr Joe Jackson, times are hard, the country is broke therefore, critical decisions ought to be taken by managers of the economy to look at ways to cut expenditure.

He said this in an interview with TV3 ahead of the presentation of the mid year budget review on Monday by the Finance Minister Ken Ofori-Atta.

“It is time for us to look at all the expenditure cuts, it is time for us to look and wonder, do wo we want to spend this much on feeding and boarding in the SHS regime?

“Is this what we want to spend our money in the such difficult times on? These are hard times, there are hard decisions to be taken and one of the things we must realize is that Ghana is broke.”

Ghana’s economy is currently going through severe challenges, a situation that has forced the country to go to the International Monetary Fund for support.

Accordingly, a staff team led by Carlo Sdralevich arrived in Ghana on July 6 to engage the government of Ghana. The team concluded its initial work on Wednesday July 13.

The IMF team met with Vice President Dr Mahamudu BawumiaFinance Minister Ken Ofori-Atta, and Governor Ernest Addison of the Bank of Ghana.

They also met with the Parliament’s Finance Committee, civil society organizations, and development partners, including UNICEF and the World Bank to engage on social spending.

At the conclusion of the mission, Mr. Sdralevich issued the following statement said Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment.

The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.

“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.

“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term,” the IMF said.

It added “The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.

“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation

“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.

“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”

The Government of Ghana on Friday July 1 announced that it was seeking support from the IMF.

This followed a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva, conveying Ghana’s decision to engage with the Fund, a statement by the Ministry of Information said.

By Laud Nartey|3news.com|Ghana

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