In 40 years, Akufo-Addo government worst in economy - Felix Kwakye

Tue, 19 Jan 2021 Source: www.ghanaweb.com

President Nana Addo Dankwa Akufo-Addo and Vice President Dr Mahamadu Bawumia have been described as having the worst economic performance in the last forty years.

That is according to a former Deputy Information Minister under the John Dramani Mahama administration, Felix Ofosu Kwakye, stressing that their administration is empty economically.

According to Moody’s, an international rating agency, Ghana’s Gross Domestic Product is expected to hit 80%, which is extremely worrying.

Moody’s has said that the country’s debt levels under the current administration are worrying, predicting that the economy of Ghana could come under pressure from its rising debt.

Reacting to the report, Felix Ofosu Kwakye said this is evident that in the last four decades, the incumbent government, led by President Akufo-Addo, becomes the one with the worst economic choices.

He added that these choices have sent the country beyond Highly Indebted Poor Country (HIPC) levels with the growing debt choking the country.

“The Akufo-Addo/Bawumia government has delivered the worst economic performance in forty years. When they took over, our debt to GDP ratio was under 56%. Now, it is nearing a staggering 80%, which is way beyond HIPC levels,” he explained.

Meanwhile Moody’s also said currency depreciation will add to the cost of debt loads and lower debt affordability. More than 50% of Ghana’s debt is held by external investors.

But as borrowing requirements rise amid wider financing gap and upcoming maturities, some market watchers want the country to consider taking advantage of the Debt Service Suspension Initiative to get modest liquidity relief.

With the DSSI, bilateral loans with maturities that fall due within the programme will have a repayment period of five years.

As of September last year, Ghana’s debt has reached a little over GH¢273 billion, with each Ghanaian expected to pay about GH¢9,200 if it is shared among a population of 30 million.

Source: www.ghanaweb.com
Related Articles: