It’s a temporary relief for businesses – Prof Quartey on cost of credit
Economist Professor Peter Quartey says businesses can expect some relief from rising borrowing costs in the short term.
Ghana's businesses may experience temporary respite from higher borrowing costs, according to economist Professor Peter Quartey. However, he cautioned that this relief could be short-lived. Speaking on Joy News’ PM Express Business Edition, Quartey stated that businesses shouldn't anticipate prolonged increases in credit costs.
Quartey suggested that the relief may only be brief if conditions in the global economy remain stable. He expressed optimism that the current situation might improve soon, but emphasized that businesses are likely to face temporary relief only.
The economist noted that Ghana's limited economic buffers leave it susceptible to external shocks. Countries involved in conflicts, like Iran and the United States, have reserves they can draw upon, while Ghana lacks such a safety net. This makes Ghana vulnerable to sudden economic disruptions.
Quartey emphasized that Ghana's reliance on imported processed fuel contributes to its vulnerability. The country is an oil producer but lacks the capacity to process a large portion of its crude oil output, leading to continued imports of processed fuel. This dependence on fuel imports makes Ghana particularly sensitive to external shocks, especially as other nations transition towards alternative energy sources.
Additionally, Quartey pointed out Ghana's heavy reliance on petroleum products, while other countries accelerate their shift towards green energy. This lack of progress in adopting cleaner energy sources further exacerbates Ghana's vulnerability to external shocks, particularly if gold prices decline or if international markets experience instability.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
