Home Politics The current economic climate is among the worst I’ve seen since 1981, according to Joe Jackson.
Politics - August 12, 2022

The current economic climate is among the worst I’ve seen since 1981, according to Joe Jackson.

The current economic climate is among the worst I've seen since 1981, according to Joe Jackson.

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Joe Jackson, Dalex Finance’s director of operations, has cited the present recession as one of the most challenging periods since 1981.

He asserts that there is no disputing the grave economic predicament the nation finds itself in, which is particularly evident in Ghana’s interest rates.

“The government’s 91-day Treasury bill” In January, the Treasury Bill was 12.5% annually; today, it is about 28. So what is that? 200% plus growth What impact does that have on your plans? How does that affect your ability to budget? What does that mean for a company that has made fixed-rate loans? What impact does that have on the problem of collecting deposits?

“People are saying I want to move my money out of the cedi into dollars and prices have gone up for everything because people no longer have confidence in the cedi owing to the depreciation we face this year,” Therefore, let no one be fooled; it is a difficult atmosphere for everyone.

“In my opinion, the data speaks for itself. The list could go on and on: 31 percent inflation, a cedi depreciation of over 9.5 percent in the forex markets, a historic low in our foreign reserves, the downgrading of our sovereign debt, etc. There is no denying the difficulty of the situation, and these are some of the most challenging circumstances I have encountered since 1981, he stated on JoyNews’ PM Express Business Edition on Thursday.

He said that any respite or hope would come in the first quarter of the next year, when the government would hopefully have agreed to an IMF program that would assist rebuild investor confidence in the nation’s economy.

The difficulties we encounter are between now and Q1, he explained, adding that Q1 is certainly the light at the end of the tunnel.

However, Joe Jackson expressed dissatisfaction with how the government handled the financial crisis, pointing out that more should have been done, notably during the mid-year budget review.

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