Business News Mon, 8 Aug 2022

'Ghana's economy is in the tank' – Prof. Steve Hanke asserts

Professor of applied economics at Johns Hopkins University-USA, Steve Hanke, has suggested that the country’s economic outlook does not look favourable.

The academic in a Twitter post on August 6 pointed to the depreciating Cedi as the reason for his claim.

In his view, the country needs a currency board in order to address the situation.

The Cedi in recent times has witnessed marginal depreciation with some analysts predicting that it may trade at GH¢10 to a US dollar – a major currency by end of the year.

“In #Ghana, the economy is in the tank. By my calculations, the #cedi has depreciated by ~34% against the USD since Jan. 1, 2020. The cedi is a central bank junk currency. GHA must mothball its central bank and install a currency board,” Prof Steve Hanke tweeted.

What Professor Steve Hanke has said on Ghana's economy in the past

Professor Steve Hanke has for some time now been monitoring Ghana’s economic growth and putting a spotlight on it.

In one of his #EconWatch diaries, the academic stated that, since 2021, Ghana has lost more than half of its sovereign bonds especially as the country is seeking [for] an IMF economic rescue programme.

This, he said, has made the West African country which is on the brink of debt default while labelling it as “a poster child for economic mismanagement.”

“Ghana's sovereign bonds have lost more than half their value since 2021. Ghana has become a poster child for economic mismanagement and is now on the brink of default,” Prof Steve Hanke’s tweet on August 2 read.

He has also predicted that Ghana's return to the International Monetary Fund will fail like its previous programmes.

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Source: www.ghanaweb.com
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