Ato Forson shares 10 economic forecasts for 2023

Former Deputy Minister for Finance, Dr Cassiel Ato Forson, has shared some economic forecasts which are likely to happen in 2023 amidst the economic crisis in the country.

According to him, 2023 will be one of the toughest years as there will be high unemployment, high inflation, and further cedi depreciation among others.

In a Facebook post, he shared 10 economic forecasts which included layoffs from the financial sector, government foreign-financed projects, among others.

The year 2022 was a tough time for Ghanaians as a result of the economic turmoil. Several businesses had to close down, the prices of goods and services became expensive, and fuel kept skyrocketing.

Several Economists have predicted worse in the year 2023. According to experts, hardship would be a global issue.

Below is Ato Forson's full statement:

1. This year, Ghana's economy will record one of the worst non-oil GDP growths due to the impact of the debt restructuring and a plethora of extremely tough fiscal and monetary policies.

2. The haircut on domestic bonds and Eurobond is expected to adversely impact the health of the banking sector, local businesses, and individuals! Also, Bilateral debt restructuring will lead to government’s foreign financed projects being abandoned.

3. Unemployment will worsen due to the freeze on employment, debt restructuring, poor business climate, and massive austerity.

4. Ghana will default in the payment of interest and principal on domestic bonds, Eurobonds, and most of our bilateral loans in 2023. These will be compounded by the ff:

5. Expected layoffs from the financial sector due to the impact of the debt restructuring and expected layoffs from gov't foreign financed projects.

6. The complete reversal of discount on import values on goods and vehicles coupled with the introduction of the 2.5 % INCREASE IN VAT and other taxes on businesses will keep prices of goods and services high, and, in some cases, higher than current prices!

7. Also, government’s policy of automatic adjustment of electricity tariffs will exacerbate the high cost of living in 2023

8. Inflation is expected to be above 30% for the most part of 2023.

9. Government’s gold for oil policy will not make any major impact on the price of petroleum products.

10. The cedi will inevitably depreciate further, from Jan to June. before a possible IMF board approval in the Q2, 2023.

NYA/FNOQ