Mass layoffs to happen in the financial sector, others – Ato Forson

Ranking Member on the Finance Committee of Parliament, Dr. Cassiel Ato Forson says there will be mass layoffs from the financial sector due to the impact of the ongoing debt restructuring.

The expected layoffs will also affect foreign-financed projects among others, the Ajumako lawmaker said in a Facebook post.

“Unemployment will worsen due to the freeze on employment, debt restructuring, poor business climate, and massive austerity,” Dr. Cassiel Ato Forson explained.

He also predicted that Ghana’s economy will record one of the worst non-oil GDP growths due to the impact of the debt restructuring and a plethora of extremely tough fiscal and monetary policies.

“The haircut on domestic bonds and Eurobond is expected to adversely impact the health of the banking sector, local businesses, and individuals! Also, Bilateral debt restructuring will lead to government’s foreign financed projects being abandoned,” he mentioned.

The cedi, according to the MP, will inevitably depreciate further, from January to June before a possible IMF board approval in the Q2, 2023.

“Inflation is expected to be above 30% for the most part of 2023.

“Government’s gold for oil policy will not make any major impact on the price of petroleum products.”