Question

It has been predicted that post covid-19 macroeconomic indicators may be discouraging, which may lead to worsening economic conditions. Ghana therefore, should prepare for the task ahead.

Required:

a) Identify the possible tasks ahead of government as implied in this case and discuss their impact on Ghanaians.

b) Propose practical measures necessary to mitigate such challenges

Answer 1

Answer:
a)
The possible tasks ahead of government as implied in the case above and their impact on Ghanaian's are mentioned below:

• Decreasing Unemployment among the common people : One of the biggest task that the government will have post COVID-19 pandemic is to decrease the unemployment level which has touched multi year high due to COVID-19. Until this is not resolved, economic condition of the country cannot come to normal.
  Decreasing unemployment will have very positive impact on Ghanaian's common people, who will have the source of income to live their life and contribute in the growth of the economy as well.
• Helping industries who suffered a huge loss and are at the verge of shutting down : Many industries suffered a great loss due to lockdown and reduced global demand across the world. Because of this many companies are at the verge of collapsing and going bankrupt. Government should help them to function properly, so that they contribute in the economic development.
• Maintaining Increased Trade Deficit of the country and decrease in economic growth : In COVID-19 providing health facility and reduced export globally leads to increasing trade deficit and devaluation of local currency. Growth rate was also not promising, Government has to focus on this as well to bring them on track.

b)
Practical measures necessary to mitigate such challenges are mentioned below:

• Government can follow expansionary policy to come out of this, to provide employment to the public and increase the growth rate Government can start multiple infrastructure projects.
• To help Industries which are in stress Government can provide stimulus package as well as loan at lower interest so that they can recover and can employ more people as the same time contribute in economic development of the nation as well.
• As trade deficit is already there to manage it, Government can ask loan from IMF or World Bank at lower rates which can help them to sponsor above mentioned activities.
• Government can focus on improving the technology of the industry as well which will make employees more productive and can increase export from the country decreasing the trade surplus.

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