Ex-Deputy Fin. Minister predicts financial sector layoffs in 2023

According to Dr. Cassiel Ato Forson, a former deputy finance minister, 2023 will be one of the most difficult years for the Ghanaian economy.

He forecasts that the economy would not only see one of the poorest non-oil GDP growths, but that the banking industry, small enterprises, and private citizens will also suffer as a result of the haircuts on domestic bonds and Eurobonds.

This was announced in a Facebook post on January 1st by Dr. Ato Forson, who is also the ranking member of the and the member of parliament for the Ajumako-Enyan-Essiam constituency.

He added on Tuesday, January 3, “Unemployment will worsen due to the moratorium on employment, debt restructuring, weak business climate, and massive austerity.”

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He made this statement after Kristalina Georgieva, the IMF’s managing director, issued a similar warning that this year will be “tougher” than 2022.

On the CBS television show Face the Nation, Ms. Georgieva stated that “we predict one third of the world economy to be in recession.”

For hundreds of millions of people, it would feel like a recession even in nations that are not experiencing one, she continued.

A $3 billion extended credit facility (ECF) from the Fund is anticipated by Ghana to help the country’s economy.

However, Dr. Ato Forson forecasts that before the IMF Executive Board even authorizes the facility, there would be layoffs, loan default payments, cedi depreciation, and other things.

“In 2023, Ghana will stop paying interest and principal on its domestic bonds, Eurobonds, and the majority of our bilateral loans.

“Predicted layoffs from the financial sector owing to the impact of the debt restructuring and expected layoffs from gov’t foreign financed projects” will only exacerbate this.

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