High inflation, slowing financial sector support for growth – Prof Ahiawodzi

High inflation hinders Ghana's financial sector's ability to mobilize savings and investments, essential for sustainable economic growth, according to Prof. Anthony Kwame Ahiawodzi.

Analyzing Ghana's banking, insurance, and capital markets over 53 years, he noted improved market efficiency post-1988 reforms compared to 1970-1987.

However, inefficiencies persist, deterring significant savings and investment.

Key issues include high inflation, interest rates, Cedi depreciation, underdeveloped agriculture, and lack of patriotism.

Ahiawodzi recommends prioritizing inflation reduction and effective implementation of programs like Planting for Food and Jobs (PFJ) and One District-One Factory (1D1F) to stabilize the macroeconomy and boost growth.