Ghana: GITFIC predicts a debt-to-GDP reduction ratio of 2-3% in 2022

The Ghana International Trade and Finance Conference (GITFIC) has predicted that there will be a reduction of at least 2-3% in the debt-to-gross domestic product (GDP) ratio in 2022.

“We expect experts in the field to learn from their experiences on how to reduce the cost involved in funding government policy through internally generated funds alongside other policies to limit power. of borrowing.

Research conducted by GITFIC and copied to the Ghana News Agency in Accra said that the debt to GDP ratio had seen a steady increase for more than a decade in Ghana and the implementation of the holistic debt policy free high schools in 2017 against the existing “progressive”. free high school” has partly added to Ghana’s huge debt to GDP ratio in recent years.

Signed by Mr. EkowBediako, Deputy Researcher, Policy and Finance and Economics Advocate, the research also expected a clear pick-up in Ghana’s growth as the economy gradually improved following shocks of COVID-19 and its concomitant effects.

“As a well-diversified economy, Ghana’s extractive sub-sector (oil and gold) and cocoa remain dependent on revenue generation which anchors growth. electricity.

“With favorable expectations for commodity price shocks and improved flow of electricity generation and supply, GITFiC forecasts GDP to increase between 4.9 and 6.3%, showing a increase given the data of the previous year and the various measures put in place by the government to increase income for productive activities in the economy.

Regarding employment, the research indicates that the unemployment rate of 453% in 2020 could be partly attributed to the COVID-19 pandemic and the gradual relief from the effects of the pandemic in Ghana, the policies of the employment highlighted in the 2021 budget to be implemented in 2022, among other measures to be implemented, should the unemployment rate not decline beyond the floating figure of 4.1 in 2018 and 2019, the GITFiC foresees a maximum unemployment rate of 4.4% in 2022.

The GITFIC, according to the research according to the sterilized facts highlighted, expects a further reduction in inflation given that 2021 saw a reduction showing a considerable recovery from the pandemic shocks internationally and domestically.

“Ghana is still on the right track with considerable recovery from the shocks of the pandemic and other challenges with the expectation that increased taxes in various sectors of the Ghanaian economy will be reflected in development projects.

The Ghana International Trade and Finance Conference (GITFiC) is a reputable private sector initiative that works closely with the private and government sectors in the sub-region and the continent as a whole to drive the Free Trade Agreement -Continental Exchange (CFTA), Trade and Finance the continent’s development agenda as defined in the AU Agenda 2063 Global Trade Issues and other trade, trade and finance, logistics and financial agreements.

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