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Tuesday, January 25, 2022

Ghanaians should brace themselves up for hard times – Economist advises

Real economic hard times for Ghanaians in the coming year, 2022, is being forecast by one of the country’s respected and finest economists, Kwame Pianim. He says things are going to be tough and everybody must brace themselves for that.

The country’s economy, he notes, has gone into tailspin and “2022 is going to be more difficult than 2021”.

0The reason he gives for this is that the extra resources “we had to weather the storm in 2021 may not be available to us in 2022”.

He says financial resources from the international monetary fund (IMF) COVID-19 alleviation social relief of distress, together with borrowings from the Bank of Ghana (BOG) and the draw-downs from the national reserves are going to cease.

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The picture is not looking good. “The national boat is in stormy waters and if any of us try to agitate for special positions, we risk sinking the boat.”

He reminded Ghanaians that the rest of the world was busy fixing their own problems brought about by the flu-like virus – COVID-19 and therefore they needed to themselves find their own solutions.

They should accept to tighten their belts to survive the crisis forced on the economy by the pandemic.

He talked organized labor out of making any unreasonable salary demands on the government, pointing out that, the “government is maintaining jobs in the crisis by borrowing to pay salaries and wages”.

That was why labor needed to be more cautious in its demands. He called for the government to shelve the proposed implementation of the 1.75 percent e-levy on all electronic transactions beyond Ghs100, in a day.

He warned that this could potentially undermine the tremendous progress achieved by way of financial inclusion of those who were not saving their monies with the banks.

“The government has to take a step back from the brink, listen creatively to the pain of our people and focus on providing a caring administration and preserving national cohesion and keeping the economy on an even keel in these stormy weathers.”

He added that the people were already finding the going tough, struggling to survive and therefore the government should rather focus on “expenditure cuts and husbanding our scarce resources”.

Content created and supplied by: KyeretwienanaOseiBonsu (via Opera
News )

Bank of Ghana
Kwame Pianim

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