The unpredictable and unstable micro economic environment has taken a heavy toll on private sector growth in the country,Ghana Employers Association says.

The Association explains the current threshhold in inflation rate of about 19 per cent drives the cost of borrowing high as interest rate hovers around 30 per cent.

President of the Association, Mr Terrence Darko, said access to credit is on the decline since businesses are competing with government for credit.

The cedi depreciation, he said makes business budgeting, planning and forecasting difficult and unpredictable.

The Association said the effects of these developments could harm healthy business trends, as the cost of doing business will be higher in the country rendering business entities uncompetitive.

Mr Darko urged government through the Ministry of Finance to strengthen dialogue with business and industry to find strategies to improve the situation.

He spoke at a media encounter on the Association’s outlook for the year.