KPMG calls for new budget to manage COVID-19 crisis
Audit and tax advisory firm, KPMG, is predicting a reverse of Ghana’s macroeconomic gains, with fiscal deficits projected to widen to 6.6% of GDP.
The firm in a statement is, therefore, calling for a new budget statement to reflect the current situation we find ourselves.
“A new budget statement may be required to needed to address these gaps and reset targets,” KPMG said in a Ghana-focused analysis on the economic impacts of the Covid-10 pandemic.
In the view of the firm, there would be pressure on the local currency due to bond sell-off by foreign investors and dwindling reserves.
“Serving external debt could be expensive and borrowing cost will rise as evidenced by rising yield on Eurobonds,” the KPMG stated in the economic impact assessment document.
KPMG also predicted some benefits the outbreak could bring us as a nation.
To them. ”Opportunities are provided for import substitution, thereby, enhancing local production of goods and services; Improve Agriculture Production and Export: Opportunity to boost domestic production and consumption of some food commodities, such as rice, maize, cassava, yam
and chicken and export of commodities for which Ghana has comparative advantage in to trade within the West African Sub-region, among countries that have not closed their borders to cargo.”
Read the portion on Ghana below