Take Advantage Of COVID-19 To Boost Economy – KPMG

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A brand new report by auditing agency, KPMG, analyzing the financial affect of COVID-19 on Ghana, has highlighted some constructive measures needed to cut back the monetary burden on the financial system.

Already, the Minister of Finance, Ken Ofori-Atta has acknowledged that the combat may price Ghana about 9.5 billion cedis, pushing the nation’s funds deficit to about 6.5 %.

Nevertheless, KPMG in its report presents some perception on what authorities can do to maintain the financial system.

The report, titled “The economic impact and implication of COVID-19: The Ghanaian Perspective” factors out that the nation can harness alternatives which can be supplied by import substitution, thereby, enhancing native manufacturing of products and companies.

It provides that Ghana can enhance Agriculture Manufacturing and Export by wanting on the alternative to spice up home manufacturing and consumption of some meals commodities, reminiscent of rice, maize, cassava, yam and hen.

The report burdened that the nation also can concentrate on export of commodities for which Ghana has comparative benefit in, to commerce throughout the West African Sub-region, amongst international locations that haven’t closed their borders to cargo.

some positives externally, the KPMG report was of the view that customers of petroleum merchandise throughout Ghana are prone to profit from the decline in worldwide value of crude oil because the ex-pump value of petroleum is prone to scale back additional.

Despite the fact that the export of some Ghanaian commodities might take successful, the report was optimistic the elevated demand for gold as a protected haven because of the coronavirus outbreak will seemingly affect positively on the stability of funds and income receipts from mineral royalties.

On the financial facet, the report maintains that an modification of the Financial institution of Ghana Act to permit for presidency borrowing from BOG as much as 10% of earlier 12 months’s tax income within the occasion of tight home financing market situations may nonetheless be an choice on the desk.

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