The Institute for Fiscal Studies (IFS) has warned that Ghana’s economic challenges could intensify if the country continues to rely on domestic funding for its national budget.
During a press briefing on Ghana’s fiscal and macroeconomic situation, the Acting Executive Director of IFS, Dr Said Boakye explained that the government’s inability to access the Eurobond market has led to increased competition with the private sector for loans.
This heightened competition could result in a shortage of investible funds for businesses.
Dr Boakye further expressed concern that the government’s aggressive pursuit of domestic funds, driven by the current crisis, exacerbates the issue.
This approach may lead to a shortage of available funds for the private sector and contribute to higher interest rates.
Consequently, these factors are likely to prolong the period of low economic growth and high unemployment.
As a result, Dr. Boakye called for the adoption of robust measures to stimulate economic growth.
Source: Graphic Online
