Ghana’s economy in a quagmire

Ghana’s economy is currently in a quagmire due to the obnoxious policies and programs introduced by the Nana Addo Dankwa Akufo-Addo/Dr Mahamudu Bawumia led administration which has inflicted untold hardship on Ghanaians according to the NDC Youth Forum- Setting the Records Straight.

A statement issued in Accra and signed by Osman Iddrisu Banpuori said Ghana’s total public debt has inched up significantly to over GHC 351 billion as at the end of December, 2021 representing a whopping 80 percent of the Gross Domestic Product, (GDP), according to the latest data from the Bank of Ghana.

The Monetary Policy Rate has also been increased significantly by 250 basis points to 17 percent from 14.5 percent, which means that the private sector should embrace itself to pay more for credit by financial institutions in the country.  

Ghana’s economy has become bleak and fragile under the watch of President Nana Addo Dankwa Akufo-Addo. Our country has now turned to “from hand to mouth” economy due to the gross mismanagement of the country’s resources by this government.

“Our debt is skyrocketing, interest payment is on the rise, our cedi is on a speed depreciation, our deficit has widened, inflation is off gear, our reserves is almost depleted…this is the naked truth. This is the headache we are facing. This is the situation we find ourselves in.  It is undeniable fact that most people cannot have the usual three square meal a day. The situation is getting out of hands. The situation is getting worse and worse every overnight’ it said.

The statement said, “just last week, the so called economic management team, led by the President Akufo-Addo assembled at the Peduase Lodge to discuss solutions as to how to save the collapsing economy. This meeting is a mind boggling and also waste of the country’s meagre resources. Our intelligence confirmed that it was just an avenue for funfair. It is worrying, especially when there is no hope in our ailing economy, which is great concern to us”.

The Akufo-Addo NPP government has unleashed unprecedented hardship on the people of Ghana yet nothing seems to be working, workers salaries cannot even sustain them for more than 24 hours. Transportation fares are up, cost of electricity is very expensive, the cost of food items have risen astronomically, among others.

This is evidence by the recent downgrading by one of the international rating agencies. Moody’s downgraded Ghana from B3 to CAA1, citing the “increasingly difficult task government faces in addressing the intertwined liquidity and debt challenges.”

“But there is hope going forward. Our hope is in someone who has done it before and ready to reshape and inject some hope in the country’s devastating economy.

We are calling on Ghanaians to get prepared to vote “this good for nothing” NPP government out of office. This family and friends, property grabbing cabal who have nothing good to offer country” it said.

According to the statement, the government has borrowed so much that there is no fiscal space to accommodate any further borrowing. The disheartening situation is that after all these gargantuan. Borrowing there is nothing to show. They basically borrowed for consumption which is dangerous for infrastructural development.