Government desperately needs innovative strategies to fund growth and safeguard the economy’s stability without worsening the plight of businesses, financial markets and international trade, advisory consultant Richmond Frimpong has opined.
He said innovative strategies – fiscal discipline, prudent financial management and forward-looking policies – that do not put an extra strain on businesses are required to overcome the ongoing economic challenges, particularly in the short-term.
These, he explains, should form a core part of the country’s economic recovery process, as they have the potential to enhance the economy’s productive sectors.
For instance, he said, at the moment 91-day Treasury bills are auctioning at about 29.2 percent as at the last action, with the 182-day T-bill crossing 31 percent. “This means in our bid to stabilise for macroeconomic stability it is even costing us more,” he stated.
This, he added, has been raised in the ongoing meetings between the International Monetary Fund (IMF) and government – which highlighted that some progress has been made so far, but at a significant cost.
To address this conundrum, he posited that a pivotal decision must be made – bridging the financial markets to the country’s industrial and trade-productive anchors, with the goal of facilitating access to cheaper funding and concurrently addressing import-substitution challenges.
Mr. Frimpong spoke at the 12th Ghana Economic Forum organised by the B&FT, and acknowledged that this remains the most formidable and viable path forward. He therefore called for intentional, thought-intensive and action-oriented efforts to establish this critical connection – asserting that without such determined measures, the persisting challenges will continue to plague the nation’s economic landscape.
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Mr. Frimpong spoke on the topic ‘Looming global recession? A myth or an awakening reality considering present challenges facing the financial sector and the business environment’, during the forum’s second plenary session.
GEF is widely considered one of the most crucial events on the domestic economic calendar. This year’s event was held under the theme ‘Building Back Better: IMF Support, Strategies to Build a Sustainable Economy and Dynamic Business Environment’.
The one-day event encapsulated the urgent need for collaborative and innovative solutions in the face of global challenges.
This year’s forum marked the 12th edition and was set against a backdrop of the toughest macroeconomic period in over a decade; the US$3billion Extended Credit Facility (ECF) from the International Monetary Fund (IMF); and ensuing actions such as the Domestic Debt Exchange Programme (DDEP). It also comes ahead of the 2024 budget presentation.