The Private Enterprise Federations (PEF) has described the year 2014 as the most difficult year for businesses across the country.
[contextly_sidebar id=”ldaygRMVBdpjVpeA79klcx0yKjrdJrdJ”]This follows several economic challenges that rocked the country including the more than 30% depreciation of the cedi, high interest rates, erratic and high cost of utility tariffs, and introduction of new taxes among others.
Government was compelled to turn to the International Monetary Fund(IMF) for a bailout to ease the country’s economic challenges.
Some businesses also collapsed while others had to cut down on labor to survive.
Speaking to Citi News the President of PEF Nana Osei Bonsu said the unpredictable nature of the economy had a negative impact on most businesses.
“Its been the most difficult year. ..Businesses are failing left and right. The cost of money, the cost of production, the cost of doing business is so high and to be compounded with power outages is like being hit on a black eye…And when there is no predictability on what we are going to do and what is available it makes it very difficult to even plan or do anything, much more to survive. The survivability is even at risk..so we need to make some hard decisions,” Nana Bonsu explained.
The IMF had earlier predicted a gloomy outlook by the end of 2014.
It said, growth will decelerate to 4 ½ percent, from the 7.1 percent in 2013, and the year will end with an average inflation of around 15 percent.
The external current account deficit was projected to narrow to 10 percent of GDP, as imports declined substantially due to slower growth and a large depreciation of the currency, while export performance remained weak.
By: Marian Efe Ansah/citifmonline.com/Ghana