Ghana’s economic environment cannot be described as favorable – Pianim

Kwame Pianim, Economist and investment consultant

Economist and investment consultant, Mr. Kwame Pianim noted that the economic problems in Ghana are so vast that it is therefore necessary for various stakeholders from industry, academia and the international community to talk about them and offer different perspectives to review by decision makers.

He noted that the monetary policy rate is a key indicator of how the Bank of Ghana (BoG) views the economy.

Speaking about the policy rate and other macroeconomic variables during the IMANI-GIZ reform dialogue on the macroeconomic environment of Ghana, he noted that when the Central Bank raises its policy rate, it indicates the fact that the central bank does not is not comfortable with the fiscal stance. of the government.

The stalwart of the New Patriotic Party (NPP) noted how structural imbalances between spending and revenue continue to affect the economy, saying that as things stand, the Ghanaian economy is not resilient because it fails to generate enough reserves.

He indicated that Ghana needs a cost-benefit analysis on significant government spending citing areas such as free high school.

He further remarked that “where the [Ghanaian] the current economy is not pretty” and the environment cannot be described as favorable. Go further. Mr. Pianim also explained that some of the problems are attributed to external shocks.

He questioned the government’s overemphasis on the revenue side of the economic equation with the oft-touted mantra that Ghanaian citizens do not pay enough tax. Instead, he argued that citizens pay different indirect taxes, in particular value added tax (VAT).

Mr. Pianim stressed that the main area of ​​interest for policymakers should be the expenditure side and recommended that the government use quality predictive models and analyzes in its economic decision-making.

He added that “we should not waste [current] crisis”, but instead use it to create a better and sustainable macroeconomic environment.

Meanwhile, Vice President Dr Mahamudu Bawumia will address the major concerns raised by Ghanaians regarding the economy today Thursday, April 7.

An Economic Policy Analyst in the President’s Office, Dr. Kabiru Mahama, also said that Dr. Bawumia will answer questions on the economy that have been asked by Ghanaians today, Thursday, April 7, during his speech.

He said the vice president will address issues that affect the future of Ghana.

Speaking on News @10 with Martin Asiedu-Dartey on Wednesday April 6, Dr Mahama said: “He wants to answer questions from Ghanaians. He will talk about the concerns of Ghanaians about their lives and livelihoods, prices, development. He will speak to Ghanaians of the future.