Kanawu Radio number 1 news portal
Cedi struggles against US dollar in first quarter of 2022
Rating agencies downgrade Ghana’s credit worthiness
President of the World Bank Group, David Malpass, has announced moves to create a US$170 billion financing package for member countries to deal with the current global economic challenges.
According to Mr Malpass, his outift is working to make available some US$50 billion as part of an initial crisis response by June 30, 2022.
Ghana however is expected to benefit from this funding package as the country is among other developing countries which are currently dealing with the fallout from the COVID-19 pandemic, rising inflation figures and impact of the Russia-Ukraine tensions.
Speaking at a press conference to open the 2022 Spring Meetings of the World Bank and International Monetary Fund, David Malpass said, “Developing countries are facing multiple overlapping crises, including the pandemic, rising inflation, Russia’s invasion of Ukraine, large macroeconomic imbalances, and energy and food supply shortages. These are causing massive reversals in poverty reduction, education, health, and gender equality.”
“The World Bank Group will respond to these crises with impact, speed, and scale”, the World Bank president added.
Meanwhile, David Malpass has called on the Government of Ghana to implement stringent policies aimed at attracting private investment from both citizens and foreigners.
This approach, according to the Bretton Woods institution, is key for countries such as Ghana.
The World Bank president continued that this will pave way for sustained economic growth from the fallout of the COVID-19 pandemic and the ongoing Russia-Ukraine conflict.
The ongoing conflict has resulted in food and fuel price hikes which have impacted significantly on the cost of living in Ghana.
Ghana’s increasing public debt stock which is now GH¢351.8 billion as at December 2021, coupled with the depreciation of the local currency, downgrades by rating agencies among others has left the nation in what some economists have described as economic distress.
But to mitigate this, government has introduced a number of revenue mobilisation measures and announced expenditure cuts to sustain the fiscal position of the country.
