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Business News of Wednesday, 29 April 2020

Source: Laud Business

Don’t print money to support economy; borrow if need be – Jackson


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A financial analyst, Mr Joe Jackson, has said if need be, the government must borrow to support the economy following the outbreak of the COVID-19 pandemic.

He said the government should not consider printing more cash due to the negative effect that will have on inflation.

Although the government of Ghana received $billion interest free loan from the International Monetary Fund (IMF) to support the economy during this time, there are fears government won’t be able to implement all the projects in the 2020 budget statement.

This is due to the fall in the prices of crude oil on the international market, a situation that analysts including Energy Expert, Kojo Poku, say will lead to about GHS800million revenue gap in the budget.

Mr Joe Jackson told local television channel, TV3 in an interview on Wednesday April 29 that the government must borrow to support the economy if it becomes necessary and not print more money.

“Don’t print money, when you print money inflation will go up. If need be borrow,” he said.

He further asked the Finance Minister to prepare a new budget and “throw away the current one out of the window.”

For his part, an economist, Professor Godfred Bokpin, said Ghana will need a non-partisan post COVID-19 economic recovery team that will ensure that the economy is resuscitated quickly after the pandemic.

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