The simple reason why the low policy rate cannot translate into the rate quoted on the commercial market is high cost of funds for the banks, huge non-performing loans and very unstable business environment for the private sector with power outages as a contributing factor.Unfortunately, the Central bank is more concerned about preventing high inflation rate than promoting growth within the market space. 206 In fact, the Bank of Ghana sees inflation as a threat especially in the coming years.The slow economic growth and macro impact in the lives of the people is the result of very high interest rates, lack of availability and access to funds for the private sector to thrive and expand so it can employ more.Ghana’s total public debt increased to GHȻ224.9 billion in 2019. Africa is beginning to feel its full impact and plans to control and manage the humanitarian challenges of the virus are underway across the continent of which Ghana is not an exception. It doesn’t expect to but the current prevailing economic happening may force the MPC to adjust upward the policy rate to match the demand and supply of funds and also the mechanism used to stabilize the depreciating currency.Interest rates at the commercial banks are still very high even though, the policy rate has been kept low for close to two years. The AKUFO-ADDO administration has made some progress by committing to fiscal consolidation, but much work is still to be done. Agriculture accounts for about 20% of GDP and employs more than half of the workforce, mainly small landholders. This is unsustainable and not a good medium to long term measure.Ghana’s 2020 economic outlook shows very unstable microeconomic indicators which has a direct and indirect impact on the macro i.e. country comparison to the world (CIA rank, may be based on non-current data): Political stability is underpinned by Ghana's strong democratic credentials, and despite slow progress on job creation and industrialisation, we expect the ruling New Patriotic Party to win the December 2020 election. the living standard and job sustainability and security for the people. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. country comparison to the world (CIA rank, may be based on non-current data): Holdings of domestic bond by foreigners saw a drop from 38.6% in 2017 to 30.1% in 2018 (GoG, March 2019). Ghana’s 2020 economic outlook shows very unstable microeconomic indicators which has a direct and indirect impact on the macro i.e. It helps to measure the affordability of prices of both imported and local products and gives a sense of the living standard of the people in the country. 93 The most critical indicators are interest rate, inflation, exchange rate and debt accumulation as a percentage of gross domestic product (GDP) which measures the nation’s production output. According to Heritage Foundation data and OECD, Ghana’s tax to GDP is around 11.9% as at 2019 which is low as compared to the highest of 14.1% in 2017 and the lowest being 7.8% in 2000. In February this year, the government issued another US$3 billion Eurobond to support its budget for infrastructure, restructuring of the energy and financial services sector, and a liability management exercise (Min. This year, the first business forum for the year organised by the Ghanaian-German Economic Association (GGEA) is dubbed "Ghana's Economic Outlook for the year 2020". Gold, oil, and cocoa exports, and individual remittances, are major sources of foreign exchange. 2 Black market operations and lack of adequate data on dollars in circulation at each point in time.Huge importation of goods and services into the country without proper forex management regime within the commercial banking space. Governments around the world are implementing various fiscal measures to mitigate the adverse effect and provide relief for businesses and households.On 30 March 2020, Ghana’s Minister for Finance delivered a Statement to the Parliament of Ghana on the “Economic Impact of the COVID-19 pandemic on the Economy of Ghana”. While total machinery imports having increased over time, the government’s capital expenditure has been on the decline since 2016. The more employment the people get, the better and wider the tax revenue to be collected. While some may have praised the government about the growth in the economy, the reality is that the living standard of the ordinary Ghanaian has not improved, the reason being that economic growth and rebased GDP does not guarantee economic wellbeing of the people.In analyzing economic performance, one critical thing to consider is the tax to GDP ratio of the country i.e. Total external debt as at end of year 2019 was GHS111.9 billion (US$20.3 billion) in 2019, (52.1% of the total public debt). +233 030 221 4244 This is an area that needs a lot more work to be done for government to be able to invest more into capital projects.The persistent shortfalls in tax revenue collections is a key reason why the government continues to borrow excessively and it’s not sustainable for a near Highly Indebted Poor Country (HIPC) country like Ghana.The depreciation of the domestic currency, the cedi, against major trading currencies is one of the key indicators you would want to look at when discussing the economic outlook of Ghana especially since it plays a key role in the rising public debt. This is as a result of stagnation in domestic revenue mobilization, high interest payment on public debts, over the ceiling expenditure, continuous excessive government borrowings and increase in public service wages and salaries.These are some very worrying concerns about the economic outlook of Ghana that need the attention of the Government, the economic management team and concerned stakeholders.The novel COVID-19 may cause Ghana’s GDP growth rate to fall to 2.2% by the end of the year due to slowdown of both local and global economic activities. High growth momentum since 2017 has consistently placed Ghana among Africa’s 10 fastest-growing economies. 167 DTTL and each of its member firms are legally separate and independent entities. country comparison to the world (CIA rank, may be based on non-current data):