President Akufo-Addo has reiterated his government’s position as regards rebounding the Ghanaian economy in his Constitution Day broadcast to the nation.
“We have, happily, turned the corner on our economic situation as we experience the rebound of the national economy, and we will continue to work strongly at the problems facing the nation,” the President said.
The Ghanaian economy has, for the past four (4) years, been in shambles, forcing the government to return to the International Monetary Fund (IMF) for a $3 billion bailout programme. The Fund, on Friday, May 19, 2023, released the first tranche of $600 million to the accounts of the Bank of Ghana (BoG).
Meanwhile, the government’s efforts to secure the second tranche of the $3 billion “rescue loan” have not been successful yet, as debt-restructuring talks with official creditors are imminent. A key step to receive IMF board approval for the second tranche.
Ghana defaulted on most of its $29 billion external debt in 2022 as interest payments and inflation soared, and it still needs to negotiate a resolution with its private international bondholders and bilateral creditors.
However, the Finance Minister, Ken Ofori-Atta, presenting the Mid-Year Fiscal Policy Review of the 2023 Budget Statement and Economic Policy to parliament in July last year, stressed that the country’s economic situation “has turned the corner” and is on a path of recovery.
“We have turned the corner and, more importantly, we are determined to continue down that path. Soon, we expect the measures taken to result in economic activity greater than anything experienced in the history of the Fourth Republic,” said Mr. Ofori-Atta.
“Our plans and programmes should soon lead to a sustained increase in domestic production, including manufacturing and farming, replacing many of the products that we are used to importing,” he added.
Here is what Akufo-Addo said in his Constitution Day broadcast
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Economics professor urges Ghanaians to be measured in their expectations
Economist and Professor of Finance, Professor Godfred Bopkin, however, cast doubt on the government’s position while acknowledging what he described as “modest improvements” in certain sectors of the economy.
He said that for these improvements to benefit all Ghanaians, the government must maintain “macroeconomic stability” for the next 15 years.
The renowned economist, in an interview with Accra-based Joy FM, said, “Let me tell you Ghanaians frankly that we are not out of it (economic crisis) yet. So that every Ghanaian will be moderate in their expectations in terms of how growth is going to turn out and how it is going to benefit Ghanaians. We can have growth at different levels,” he stated.
“The economy can recover at different levels, but before it will benefit the ordinary Ghanaian, we need to maintain microeconomic stability for not less than 15 years,” the Professor of Finance added.