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Ghana’s debt to GDP ratio to decrease by at least 2% in 2022 - GITFiC

GITFIC Ghana International Trade and Finance Conference

Fri, 21 Jan 2022 Source: www.ghanaweb.com

4.4% unemployment rate to be recorded in 2022, GITFiC

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Ghana International Trade and Finance Conference (GITFiC) in its trend analysis has indicated that Ghana’s debt to GDP ratio would decrease by at least 2 percent to 3 percent in 2022.

It explained that although Ghana’s debt to GDP ratio has increased over the years due to the implementation of government flagship programmes, it expects the cost of implementing these programmes to reduce in 2022.

“The debt to GDP ratio has received a consistent increase for over a decade in Ghana. The implementation of the holistic free senior high school policy in 2017 against the existing progressive free senior high school,” in part added to Ghana’s huge debt to GDP in recent years.

“However, we expect that experts in the field are learning from their experiences on how to reduce the cost involved in government financing the policy through internally generated funds alongside other policies to curb the borrowing power. At least, a 2% to 3% reduction in debt to GDP ratio in 2022 will be a good move to build on by the nation,” the report said.

GITFiC also projected that Ghana’s GDP would increase between 4.9 percent to 6.3 percent in 2022.

It explained that the projected growth rate was due to the expectation that Ghana’s economy would recover from the impact of the COVID-19 pandemic and the growth of the extractive sub-sector.

“We expect an evident revival in Ghana’s growth as the economy is gradually improving from the shocks of COVID-19 and its related concomitant effects. As a well-diversified economy, Ghana’s extractive sub-sector (oil and Gold) and cocoa still remains reliant for revenue generation that anchors growth,” the report said.

GITFiC also stated that unemployment would increase by 4.4 percent at worst in 2022 adding that inflation would also decrease for 2022.

Source: www.ghanaweb.com
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