Prime News Ghana

Performance of the economy needs more stimulus package diversification- Prof Peter Quartey 

By Justice Kofi Bimpeh
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Professor Peter Quartey is calling for the diversification of the government's stimulus package for businesses.

Professor Peter Quartey said despite the agriculture sector recording a 2.5% growth rate there is a need to focus more on the sector.

He advised the government to continue to stimulate the economy.

"...government to continue to stimulate the economy as long as it's able to find cheaper sources of finance or non-debt finance, non-revenue and non-tax revenue especially and continue to stimulate the economy because if we don't do so we are likely to experience a decline."

"Our economy is not too diversified although we see agriculture picking up I think we have not invested much into modern methods of agriculture and the value chain, I think it is time we take a critical look at agriculture especially agriculture has recorded some modest growth rate but I think we could do better if we invest more into large scale farming and irrigation."

READ ALSO : NBSSI lists critical sectors govt's stimulus package will focus on

Government Statistician Prof. Samuel Kobina Anim said interventions are in place to mitigate the impact of the Covid-19.

He added that the pandemic will still have some effect but recording a growth rate will be dependent on the interventions.

"I will be circumspect in indicating that another contraction is going to happen in the 3rd quarter simply because a number of interventions have been instituted and it is going to play out on how these interventions will mitigate the further effect of Covid-19. Indeed one would be careful in saying that the 3.2 would not experience a sharp turn around as we move into the 3rd quarter and 4th quarter. As you rightly put it the effect of Covid-19 still lingers on especially when we have some restrictions still in place so we will still have some effect but the extent of the effect as in whether it is going to be a contraction or a much marginal increase growth rate will depend on how the interventions are able to mitigate the effects of Covid-19."