Asset penetration, measured as the ratio of total assets to GDP, was 40.5 pct indicating continued deepening of the financial sector in the economy. 10. These notwithstanding, there are some concerns to us at the Bank of Ghana like the persistently high level of NPL ratios compared to other peer countries.
Expectations of long-term prospects are also depressed. If such pessimism were to persist, we would risk that low investment and high unemployment enter a feedback loop, increasing the likelihood of the economy settling into a form of “underemployment equilibrium”. Cyclical drags would then become structural. In my view addressing this situation has three parts.