Financial analyst Joe Jackson has described the current economic downturn in the country as one of the toughest it has seen since 1981.
He believes the situation has been reflected in Ghana’s interest rates, cedi depreciation, high import bill, credit rating downgrades and more.
Speaking in an interview on Accra-based JoyNews, the COO of Dalex Finance lamented the high cost of living and low confidence in the local economy.
“The government Treasury bill, 91 days The Treasury bill was 12.5% a year in January, it is now almost 28. What is it? 200% + increase. What does that do to your planning? What does this do to your budget? What does that do to an institution that has given out fixed rate loans? And what does this do to the issue of collecting deposits?
“Because people have now lost faith in the cedi due to the depreciation we are facing this year, people are saying I want to transfer my money to dollars, and prices have gone up for everything. So it’s a tough environment for everyone, let’s not get anyone wrong, it’s a tough environment,” he explained.
He further said that the current inflation rate which is at an all-time high of 31.7% indicates that times are indeed tough for many Ghanaians.
“I think the numbers speak for themselves. Inflation at 31, the cedi depreciated in currency exchanges to over 9.5, our foreign exchange reserves at an all-time low, our sovereign debt downgrade and you could go on and on. So, I don’t think there’s any dispute as to how difficult those times were…these are some of the toughest times I’ve faced since 1981,” he added.
Joe Jackson was also of the view that any sign of economic relief should come as soon as possible in order to save the Ghanaian economy.
He, however, remained optimistic that Ghana would, in the first quarter of 2023, join an International Monetary Fund to help restore macroeconomic stability and improve investor confidence.
“So obviously the light at the end of the tunnel is the first quarter of 2023 and the challenges we face are between now and the first quarter of 2023,” he said.
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