HIPC predictions are doomsday prophecies - Economist

Economist Dr Johnson Asiama has said fears that Ghana could recede into its highly indebted poor country status lack basis.

Economist Dr Joe Abbey of the Centre for Policy Analysis as well as former Deputy Finance Minister Anthony Osei Akoto warned of the possibility in the weeks past in light of the 12.1 per cent budget deficit recorded last year.

The deficit has been described as the highest in Ghana’s history.

The 2012 running mate of the main opposition NPP, Dr Mahmoud Bawumia had also in an earlier statement said the deficit could even be worse. However Former Chief Manager at the Bank of Ghana Dr Asiama told XYZ Breakfast on Monday March 4, 2013 that such fears and predictions are alarmist.

“For me those are doomsday prophesies…The fact that we have a budget deficit of 12.1 percent last year doesn’t mean that everything will come to a halt this year”.

Dr Asiama nonetheless advised the government to spend wisely as the finance minister prepares to deliver the 2013 Budget to parliament on Tuesday March 5, 2013.