• Live Radio
  • Videos
  • About
  • Contact
  • Despite Media
Ghana Election 2020
  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • VIDEOS
  • Media
    • Videos
    • Audio
    • Live Radio
    • Photos
  • Election 2020
Local News
 
 
 
Home Business Economy 202101

Ghana To Face Serious Economic Challenges This Year —Kenneth Thompson

16-Jan-2021
/ Economy, Business
Email
Print
Comments 0
Mr Kenneth Thompson
(0)
Comments
Share on Facebook Share on Twitter
 

Ghana stands to face grave economic challenges in 2021, if the government does not adopt the right economic recovery strategy, Kenneth Thompson, Chief Executive Officer, Dalex Finance Limited has said.

He said the economy was in recession after two consecutive quarters of negative Gross Domestic Product growth, adding that, the standard prescription for a recovery from recession was an economic stimulus package and yet Ghana was ‘broke’.

Mr Thompson made this remark in an interview with the Ghana News Agency on the country’s economic prospects in the year 2021, “looking through the crystal ball”.

He said the only way the country could start to fund a half-way decent stimulus package in 2021 was either to borrow about five billion dollars on the international capital markets or the country must reign in expenditure and increase tax revenue.

He described the solutions as a choice between the ‘devil and the deep blue sea’, saying, that was the situation President Nana Addo Dankwa Akufo-Addo would be facing either to borrow more or increase revenue mobilisation.

“Despite the rhetoric and the one hundred-billion-cedi Ghana Cares ‘Obaatampa’ programme, President Akufo-Addo, is facing a choice between “the Devil” and “the Deep Blue Sea” with respect to the economy.

“He faces the possibility of going down in history as the all-time ‘President of Public Debt’ or the ‘President of Austerity’,” he said.

“Despite the rhetoric and the one hundred-billion-cedi Ghana Cares ‘Obaatampa’ programme, President Akufo-Addo, is facing a choice between “the Devil” and “the Deep Blue Sea” with respect to the economy.

“He faces the possibility of going down in history as the all-time ‘President of Public Debt’ or the ‘President of Austerity’,” he said.

He said the economic recession if not well managed would result in a spectra of high unemployment, reduced revenue collection combined with increased demand for stimulus packages.

“Businesses face reduced demand, revenues and profits. Customer defaults will rise and this will trigger staff layoffs and other unpleasant cost-cutting measures,” he said.

He said if the government decided on a continuous borrowing trajectory, it could lead to the Ghanaian economy crashing, the effects of which would be heavy cuts to government expenditure, massive layoffs, unemployment, currency crash, and a low standard of living.

He said to avert the risk of debt distress; the country must reign in expenditure and increase tax revenue.

“To reign in expenditure, projects that have made the government popular will have to be severely curtailed or cancelled. These include; Free SHS, free water and electricity, NABCO and payments to depositors with defunct financial institutions,” he said.

Source: Ghanaian Times

 

 
 

 

Comments ( 0 ): Post Your Comments >>

Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.
Featured Video
Previous Post

Less Than 2 Million Ghanaians Pay Tax

Next Post

Fitch, Moody’s Project Strong Growth For Ghana But World Bank Thinks Otherwise

 
 

More Stories

Ghana And UK Sign Post-Brexit Trade Deal
aYo Ghana Makes Significant Strides Despite Headwinds
Ghana Unlikely To Seek IMF Help To Rebuild Finances - EIU
Economic Governance Platform Assesses Ghana’s Economy
Africa's Oil States 'Face Huge Losses' By 2040
Cedi’s Depreciation, Taxes Push Fuel Prices Up Over 340% In 10yrs - IES Analysis
'Economy Vulnerable To Portfolio Outflows' - Economist
Coronavirus: Restaurant Patronage Drops In Accra
Fitch, Moody’s Project Strong Growth For Ghana But World Bank Thinks Otherwise
Next Post

Fitch, Moody’s Project Strong Growth For Ghana But World Bank Thinks Otherwise

  Ghana Business News

  • General News
  • Economy
  • Banking & Finance
  • Stock Market
  • Industry/Manufacturing


 
 

Other Economy Stories

  • Ghana And UK Sign Post-Brexit Trade Deal

  • aYo Ghana Makes Significant Strides Despite Headwinds

  • Ghana Unlikely To Seek IMF Help To Rebuild Finances - EIU

  • Economic Governance Platform Assesses Ghana’s Economy

  • Africa's Oil States 'Face Huge Losses' By 2040

  • Cedi’s Depreciation, Taxes Push Fuel Prices Up Over 340% In 10yrs - IES Analysis

  • 'Economy Vulnerable To Portfolio Outflows' - Economist

  • Coronavirus: Restaurant Patronage Drops In Accra

  • Fitch, Moody’s Project Strong Growth For Ghana But World Bank Thinks Otherwise

  • Ghana To Face Serious Economic Challenges This Year —Kenneth Thompson

 

 
 

Popular Videos

Chilling Account Of How Musician Adelaide The Seer Lost Her Sight In SHS

Election Petition: Why Are We Being Told To Accept SC Ruling; Is There Anything Amiss? Pratt Queries

Just 4 Laughs With Dan Kweku Yeboah & Sefa Kayi: The Wee Smoker Who Offered To Give Soldiers Coconut

LGBT: If You Want To Leave A Legacy, Get Us An L.I...Enough Rhetoric - Opuni Frimpong To Nana Addo

Minority Rejects Kojo Oppong Nkrumah, Afriyie Akoto, Hawa Koomson - Nana Akomea Reacts

Gay Rights Are Not Human Rights – Rev Dr Opuni Frimpong

Peace FM Online and Despite Media

peacefmonline.com offers its reading audience with a comprehensive online source for up-to-the-minute news about politics, business, entertainment and other issues in Ghana

Follow us on social media:

Category

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • Trivia
  • Foreign
  • Audio
  • Photos
  • Videos
  • Elections
Decision Time
Ghana Election 2020 2016 Elections
Services
Live Radio Audio on Demand Ghana Elections Advertise with Us
Useful Links
Despite Media About Us Contact Us Feedback Form Terms and Conditions Privacy
Our Brands
Despite Media UTV Peace FM Okay FM Hello FM Neat FM Peacefmonline
  • About
  • Advertise
  • Terms & Conditions
  • Contact
  • Privacy

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Articles
  • Trivia
  • Foreign
  • Live Radio
  • Photos
  • Videos
  • Audio
  • Election 2020

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media