[ THE ASSUMPTA ] NewsLetter Magazine, Wed 11th January 2023. ASSUMPTA Publications Updated; and have cut, edited, and rearranged the original here. Our intent was not to change the meaning but to condense it.
Prepared by ASSUMPTA-GTU Economics Department, the Outlook that puts forward prices and current balances based upon our review.
Restoring the economic stability to support recovery, Ghana economy begins its recovery from the effects of the worldwide slowdown caused by COVID-19, the country faces challenges caused by long-standing macroeconomic vulnerabilities, and by new challenges, including rising global commodity prices and sharp exchange rate depreciation. President Nana Akufu Addo made policies available to mitigate these threats
The darker the Night, the Closer the Dawn
The first thing is to pray. From the moment we begin to pray, things start moving.
The darker the night, the closer the dawn. From the moment we chant Nam-myoho-renge-kyo with a deep and powerful resolve, the sun begins to rise in our hearts. Hope prayers are the sun of hope.To chant each time we face a problem, overcoming it and elevating our life conditions as a result this is the path of “changing earthly desires into enlightenment,” taught Nichiren Buddhism
Developing the courage to fight against unimaginable COVID-19 and the associated challenges that heightened macroeconomic vulnerabilities and slowed economic recovery.
Inflation increased year by year from February 2020 till 2022 and threatens living standards, especially in low-income urban households.
The fiscal deficit declined, driven by higher domestic revenue and spending curbs.
High debt-service obligations and low revenue levels continue to limit the fiscal space for critical investment in human capital.
Public debt levels increased considerably since 2019, endangering macroeconomic stability.
Ghana’s high unemployment and job losses and business closures caused by the spread of COVID-19 continued to put pressure on household incomes. With prices rising, many households are falling into poverty.
Despite a trade surplus and resilient Ghana’s export, and foreign reserves remain low. Energy and mining, as well as agricultural exports, were buoyant till now, supported by strong external demand and higher commodity prices.
Ghana’s GDP growth is projected to recover, provided that ongoing debt renegotiations are successful and strict COVID-19 challenges are not reinstated. A gradual recovery is expected in domestic services, while external demand will remain subject to slow recovery among trading partners.
Assumpta: Reviving Ghanaians’ willingness to Live. The Covid-19 allowed Ghanaians to turn tragedy into a source of unlimited strength.
Tsasi: For the first time in Ghana’s political history, after Kwame Nkrumah, Ghana have had a president who follows his mentor’s footsteps for not withdrawing completely from his people despite the challenges.
When Ghanaians were suffering and leaving the country, president Nana Akufu Addo through his sympathy and hope for a better Ghana, he created a shared prosperity policy that prioritises “Ghanaians first.”
(1) First he create fiscal space through better resource mobilisation and spending efficiency;
(2)He restored debt sustainability by strengthening debt management and transparency.
(3) He strengthen financial sector stability through legal and regulatory tools conduct structural and business environment reforms.
(4) He unlocked the potential of regional Connectivity, looking to transform Ghana from a land-locked country to a land-linked country through regional infrastructure development.
Significant investments include the Ghana-China Wuju Group railway projects signed for $500m a deal to build Ghana Western railroads to ease West and East unemployment economically, and key road networks.
The challenge is to ensure that Ghanaians can fully benefit from this improved connectivity, not only as a transit country but also through increased economic activity and export volumes, value-added services, and the creation of new and better jobs.
Ghana-China Wuju Group railway projects signed for $500m a deal to build Ghana Western railroads to ease West and East unemployment economically, and key road networks.
Assumpta: No matter how hopeless or bleak things appear, the moment always comes when suddenly our spirit revives, and hope is reborn. That is why Ghanaians must never give up on this man, a man who has emerged stronger, more solid and able to cooperate and collaborate with the majority of the world more effectively, just like his mentor’; Kwame Nkrumah.
Tsasi: What to expect in 2023.
Assumpta: Why a global recession is inevitable in 2023 The world is reeling from shocks in geopolitics, energy and economics
The Keynesian economics of Keynes theory declare that one person’s spending goes towards another’s earnings, and when that person spends her earnings she is, in effect, supporting another’s earnings.
The key to Keynes’s contribution was his realisation that liquidity preference the desire of individuals to hold liquid monetary assets.
Keynes’ solution to this poor economic state was to prime the pump. By prime the pump keynes argued that the government should step in to increase spending, either by increasing the money supply or by actually buying things on the market itself.
Keynesian economics advocates for the public sector to step in to assist the economy generally, it is a significant departure from popular economic thought.
Tsasi: Indeed, Makiguchi openly accept this kind of universal values upon which the world economic order is based.
There is no simple formula for this humanitarianism. Rather, all activities, whether of a political, military or economic nature, should be conducted in conformity with the principles of humanitarianism.
What is important is to set aside egotistical motives, striving to protect and improve not only one’s own life, but also the lives of others. One should do things for the sake of others, because by benefiting others, we benefit ourselves. This means to engage consciously in collective life.
