Business Ex-Deputy Fin. Minister predicts financial sector layoffs in 2023 – Out Source

A former Deputy Finance Minister, Dr Cassiel Ato Forson, says 2023 will current one of many hardest years for the Ghanaian economic system.

Not solely will the economic system file one of many worst non-oil GDP growths, he predicts, but additionally the banking sector, native companies and people will likely be adversely impacted by the haircuts on home bonds and Eurobonds.

Dr Ato Forson, who can also be Member of Parliament for Ajumako-Enyan-Essiam Constituency and Ranking Member on the Finance Committee of Parliament, made this identified in a New Year put up on Facebook.

“Unemployment will worsen due to the freeze on employment, debt restructuring, poor business climate, and massive austerity,” he additional wrote on Tuesday, January 3.

His statement comes in the wake of an identical warning by the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, that this yr will likely be “tougher” than 2022.

“We expect one third of the world economy to be in recession,” Ms Georgieva stated on the CBS information programme Face the Nation.

“Even countries that are not in recession, it would feel like recession for hundreds of millions of people,” she added.

Ghana is anticipating a $3-billion prolonged credit score facility (ECF) from the Fund to spice up the economic system.

But Dr Ato Forson predicts there will likely be layoffs, mortgage default funds, depreciation of the Cedi,  and others earlier than the IMF Executive Board even approves the ability.

“Ghana will default in the cost of curiosity and principal on home bonds, Eurobonds, and most of our bilateral loans in 2023. These will likely be compounded by the ff:

“Expected layoffs from the financial sector due to the impact of the debt restructuring and expected layoffs from gov’t foreign financed projects.”

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