The Ghana’s economic team has been commended for putting in place vibrant economic measures to bolster Investor confidence.
Mr. Selasi Kofi Ackom, Chief Executive Officer of Ghana Trade and Finance Conference who gave the commendation mentioned some of the policies as the sustenance of policy rates, having shock absorbers for financial fluctuations in the face of the COVID-19 pandemic, the increments of Foreign Direct Investments and the use of homegrown economic policies to have direct collaboration with the international world.
Mr Ackom, who was speaking to the Ghana News Agency on economic policies the world economies were adopting to survive from the crisis of post-COVID-19 pandemic said although there had been fuel increases in the countries, even some developed economies could not escape such blows.
He said the fact that policy rate was well managed, it would also cushion borrowers and give some level of confidence to investors, a measure that could be a major contributory factor to high economic growth in the coming days.
Quoting the Ghana Investments Promotion Council, Mr Ackom said Foreign Direct Investments had increased because of spillover effects from some developed economies and gave the assurance, such policies were necessary for growth and development.
He said recently, the Security services recruited more staff because economic policies managed to keep payrolls afloat and put money in the pockets of employers and commended the Central Bank for sustaining good policy rates that subsequently made borrowing quite attractive as there were no high interest rates.
“If your policy rate is left loose, then you are discouraging investors into your country and urged the public not to measure good economic management through on micro economic levels, as that could be misleading.”
Speaking on tapering that U S government was thinking of introducing into their economy, he said it depended on whether the country was using the Federal or Unitary governance system and said, no matter, the system, once prudently used, the benefits could be phenomenal.
He explained that it was a system to re-engineer and re-align economies, particularly during financial crisis where the purchases of some basic commodities could be put on hold.
Mr Ackom explained that Tapering was a process, where a Central Bank scaled back its asset purchases, when economic conditions improve and such stimulus was not required and gave the assurance that such measures could help people and governments to save more money to maintain their economic balance.
Such a move by America, he said could help them to stabilise and re-engineer their economy in coming days. GNA