Dr. Richmond Atuahene, a banking consultant, has urged the government to give private sector participants more inexpensive funding to support economic stimulation in the nation.
According to him, this strategy will support economic stability and increase the GDP.
Dr. Atuahene observed that the government’s continuous borrowing was dangerous, particularly in situations where the private sector was not competitive, during an Investment Dialogue on Citi TV on Thursday.
He informed Bernard Avle, the Dialogue’s moderator, that continuing along this route would not ensure the nation’s economic recovery and might perhaps result in a rise in the unemployment rate.
“The governor said recently that credit in the private sector has declined in real terms by 10% because the government is just like a snake, this snake, I don’t know its name, it only swallows, swallows. He is taking money. What does he take the money for?”
“Let the private sector have cheaper funds to turn the economy. That is when the GDPs or you are talking about the economy, the stability, and everything will come. But you see if the government is borrowing and the private sector cannot compete then we are crowding out the business. And it is a very dangerous thing. There will be no recovery. And if the economy does not recover, unemployment will be very high.”
