Professor Peter Quartey, Director, ISSER
DIRECTOR of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Prof. Peter Quartey, has explained some factors responsible for the current economic hardships being faced in the country.
In a presentation at this year’s edition of the ISSER Roadshow on the State of the Ghanaian Economy Report (SGER) 2020 and Ghana’s Social Development Outlook (GSDO), Prof. Quartey stated that Ghana’s economy suffered turbulent moments in the first quarter of 2022 owing to an array of developments, both internally and on the global stage.
According to him, the prevailing hardship in the country was not only peculiar to Ghana, citing the 2022 inflation rates of United States (US), Germany, and the United Kingdom (UK).
Throwing more light on the situation, the astute economist explained that Ghana’s economy was badly hit by the rise in crude oil prices from $74.17 per barrel in December 2021, to $130 as at March 7, 2022, before going down to $115 as at March 24.
The cedi had also cumulatively depreciated by 15.6 per cent against the dollar; 13.4 per cent against the pound sterling, and 13.3 per cent against the euro.
“At end of December 2021, the public debt stock had increased from GH¢351.8 billion, which was 80.1 per cent of GDP as compared to the GH¢218.2 billion in December 2020 (sic),” he noted.
He indicated, however, that despite the challenges, the country was growing with good prospects.
Prof. Quartey, thus, urged government to, as part of its fiscal consolidation measures, reintroduce the road toll system, which must be reinstated with an efficient electronic-pass system to address congestion on some parts of the roads in the country.
Government, he added, must also embark on aggressive revenue mobilisation through efficient tax and non-tax revenue-generating measures, adding that the property rate of GH¢468 million earmarked for the year 2022, for instance, was not adequate enough, considering the number of properties in the country.
BY Nii Adjei Mensahfio