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Wednesday, December 23rd, 2015

 

Domestic Spending Abroad and the Deficit

The recent deficit current account report requires urgent changes in Ghana’s international trade posture as well as spending especially, domestic spending abroad, a composite contributor to the balance of trade deficit. Unlike trade policy that may require some time to negotiate, the government can take immediate steps to reduce domestic spending abroad by closing at least the eight embassies and High Commissions within the ECOWAS region. The deficit current account outcome for Ghana, can be expressed simply as excess expenditure over income. The ideal expectation for a balanced economy isRead More