Business confidence in the economy has dropped to its lowest in five years, according to the Association of Ghana Industries’ (AGI) business barometer report for the second quarter of this year.

The report engaged about 450 chief executives of big to small businesses across various sectors on the their expectation of the current business environment and what they expect in the coming months.

The barometer which ranked from 1 to 100 shows that in just three months business confidence had dropped from 90 to about 22percent.

 The business owners also cite the cedi depreciation, power supply and increased taxes as a major challenge for them.

Chief executive of the Association, Seth Twum Akwaboah told Joy Business government must act to save the entire industrial sector from collapsing.

“If you look at the key challenges that we identified, the top five challenges are all macroeconomic  environment related. Therefore what we need to quickly do is to stabilise the economy. Once the economy is stabled confidence comes back”, said Mr Akwaboah.

He said if the falling confidence in the economy is not arrested by government the situation could prove extremely dire for the country.

However, most of the chief executives interviewed said they donot see the situation improving in the coming months.