General News of 2014-04-07

Ghana’s economic fundamentals are hopeless - NPP

The Minority in Parliament led by its leader, Osei Kyei-Mensah-Bonsu, has launched an attack on the Mahama administration describing it as incompetent.

At a news conference in Accra on Monday to state their own version of the state of the nation, Osei Kyei-Mensah-Bonsu said the Mahama administration’s ineptitude has led to the difficulties the country is currently experiencing.

This comes several weeks after the President, John Mahama, delivered his state of the nation address to Parliament, an address the Progressive People’s Party (PPP) described as hollow and full of deceit.

The New Patriotic Party (NPP), however, is now officially responding to the president’s state of nation address.

According to them, Ghana’s current economic fundamentals “are hopeless and cannot be described as sound by any stretch of imagination.”

This is however contrary to the claims made by the president who stated that “despite the short-term challenges we face, our economic fundamentals remain sound and our mid-term goals are bright.”

The Suame MP who addressed a wide range of issues said if government continues with its current fiscal policy, Ghana will not be out of its economic woes.

“The cedi is now selling at 2.8 to one dollar and continues to fall at an accelerated rate. In fact, it has depreciated by as much as 17. 6% in the first quarter alone this year compared with the depreciation of 1.1% in the same quarter last year,” he said.

He predicted that the cedi will hit one dollar to three cedis by the close of the second quarter of 2014.

Osei Kyei-Mensah-Bonsu mentioned high interest rates, dwindling gross reserves, high trade deficits among others adding that “this is the first time in a very long period that as a nation, we have had a twin current account deficit and budget deficit twice in a row.”

Public debt stock, according to the minority leader, “is now GHC55.6 billion” and urged government to take immediate steps to rectify the situation.

He further estimated that “as we speak today, every Ghanaian, including babies who are born as we speak owe GHC 2,000.”