Ghana’s central bank has called for vigilance in monetary and fiscal policies to support the West African country’s economic recovery amid global uncertainties.
Philip Abradu-Otoo, director of research at the Bank of Ghana, made the call during a Friday training session for groups of business and financial journalists.
Abradu-Otoo said that despite the latest indications of a robust economy, with growth of 5.4% in 2021 compared to 0.4% a year earlier, downside risks remained, including tighter financing conditions. external, persistent supply chain bottlenecks and new headwinds from an extended Russia. – Ukrainian conflict.
“Fiscal and monetary policies should remain vigilant and ready to take additional policy measures as well as structural reforms, in the future, if necessary to improve confidence in the economy to support economic recovery,” he said. he urged.
He said controlling government spending with further revenue mobilization measures would be crucial to support the fiscal consolidation path and help lift financing constraints, as external financing prospects are limited.
In addition, he said bold policies that would improve the operating environment for businesses to attract private capital in foreign direct investment and portfolio investment, political stability and macroeconomic stability would go a long way in regaining investor confidence.
Abradu-Otoo added that further export diversification and the creation of import substitution industries to take advantage of the African Continental Free Trade Area would provide a tremendous opportunity to increase intra-regional trade and economic growth. regional integration.
“This will help improve the trade balance and possibly the current account and reduce the need for external financing,” he said.
In addition, the central bank official said leveraging technology to improve remittance flows, digitalization and mobile money applications was also key to deepening the business-enabling environment to strengthen the investor confidence. Final article