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Company News on Tuesday, July 23, 2019
Source: Myjoyonline.com
2019-07-23
play the videoKen Ofori-Atta, Minister of Finance
The Institute for Fiscal Studies (IFS) has asked the government to reduce its appetite for borrowing in the financial market.
The Institute said that despite the steady reduction in the policy rate and inflation, lending rates remain high, recording a slow decline as a result of government borrowing.
Despite the Bank of Ghana's willingness to lower the lending rate by keeping the key rate at 16% for the third time, IFS believes that the government must pay attention to its spending.
Retail companies and lenders still have to face a significant reduction in the interest rate.
Leslie Dwight Mensah, principal investigator at the Institute, in anticipation of the mid-year budget review of July 22, said the government's decision to borrow more had contributed to the slow reduction in the rate of # 39; s interest.
Meanwhile, on the issue of revenue management, IFS fears that if the government does not tackle compensation problems in the public, the economy could be weakened.
The Minister of Finance is encouraged to implement measures that will create employment opportunities for youth in the extractive industry.
"The economic growth driven by the extractive industries means that its direct and indirect effects on employment and incomes will be few due to growth driven by services, agriculture and agriculture. manufacturing industry.
"The main threat to the government is to expand non-extractive sector growth in order to expand economic growth activities to boost employment and a wide range of income," he said.
Macroeconomics has been developed since 2017, with a reduction in inflation, relative monetary stability and low nominal interest rates.
"The latter resumed in the first half of 2019 due to an increase in domestic government borrowing, especially in the first quarter of the year," said Leslie Dwight Mensah.
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