You cannot maintain stable economy, strong cedi when you import almost everything - Analyst

Inflation Nov One of the major drivers of Ghana’s high inflation rate is its currency issues

Mon, 28 Nov 2022 Source: rainbowradioonline.com

Ghana’s import-driven economy, according to tax expert Julius Gyimah makes it difficult for the local currency to appreciate against the dollar and other major currencies.

He explained that an import-driven economy would suffer from high debt problems, which would hurt the cost and standard of living of its citizens in the long run.

According to the analyst, one of the major drivers of Ghana’s high inflation rate is its currency issues, which are based on our import bills.

Around 70-80 percent of what we consume locally is imported from other countries.

"When you import, you would need foreign currencies, and because of that, our cedi will always depreciate,” he stressed.

He emphasized the importance of Ghana taking steps to reduce its import bills because, in the long run, consumers are the ones who must purchase goods at high prices.

“Our economy will struggle until we get factories and industries to do import substitution and reduce the level of imports.”

Using the spare parts industry as an example, he stated that the industry is thriving, but all of the spare parts we use are imported from other countries.

It is a multi-billion-dollar industry that will have an impact on our industry in one way or another.

He was speaking to Kwabena Agyapong on Frontline on Rainbow Radio 87.5Fm.

Source: rainbowradioonline.com
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