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The Institute of Economic Affairs (IEA) has made urgent calls on the Mahama administration to resolve the perennial energy crises crippling the economy.

The Institute called on the Government of Ghana to address the power shortages since the situation is collapsing businesses.

As part of its activities, the IEA has conducted a Business Confidence Survey (BCS) to monitor the current business situation in the country and also forecast short-term developments in the country.

The survey which was conducted last year in November was in recognition of the private sector as the engine of growth of the economy.

"Our Business Confidence Survey asks company manager's about the current situation of their business as well as their plans for the near future..."

The survey captured pertinent issues affecting the livelihood of local businesses vis-a-vis some decisions and policies by the government as well as economic challenges.

Engaging stakeholders from the business sector and a section of the media at a press conference, Senior Economist of the IEA, Dr. John K. Kwakye recounted some grievances that were laid before the Institute during the survey.

According to him, business concerns were largely about the economic crunch that has since last year hit the core of the country.

He said several firms that were interviewed complained bitterly about the gradual dwindling away of their proceeds compelling them to lay off workers.

Also, there has been high cost of production since the last six months, Dr. John Kwakye revealed to Peacefmonline.com.

The IEA Business Confidence Survey highlighted some challenges that the firms faced, stating that "the performance of firms interviewed has worsened in the last six months, largely due to the adverse business environment. 53% of the non-financial sector firms interviewed indicated that their performance had deteriorated over the last six months compared with the previous six months...

"The business environment had deteriorated in the last six months. This is evident in the obstacles facing business including shortage of energy, high cost of credit and poor infrastructure and adverse macroeconomic environment, including high inflation and currency instability."

During the press conference held at IEA Conference Hall on Tuesday May 19, 2015, Nora Bannerman, an Executive from the Association of Ghana Industries (AGI) commended the IEA for conducting the survey.

She however called for the survey to be held continually in order to streamline the private sector.

Though the survey revealed the impact of government decisions on the performance of the private sector, the IEA however recommended that government takes pragmatic steps to ensure a stable "macroeconomic environment to guarantee certainty in investment and business planning. In this regard, sound public financial management is critical in creating a more conducive environment with respect to the cost of credit, exchange rate and lower inflation."