Expect more economic difficulties in the coming years – Prof. Stephen Adei to Ghanaians

Renowned economist, Professor Stephen Adei, has called on Ghanaian to brace themselves for impending economic difficulties in the coming years.

He stressed that the recent delays and hiccups in government’s debt restructuring operations are only signs of the anticipated economic headwinds to come.

Speaking during a press briefing organized by the Grand Coalition in Accra on Monday, April 15, the former Board Chair of GRA called on Ghana’s economic managers and political leaders to focus on implementing practical and sustainable policies that put the economy on a sound footing.

“The reality is that the economic crisis we are in is going to be with us for some time, because if you look at the domestic debt exchange programme, most of it has been delayed till 2027, 2028.

“I wish that I will be hearing from those who want to be heads of state and their campaigning — not their grand ideas, how they are going to see us through so that we reach a stage where we have a sustainable development outcome. In other words, we need in this nation, a three-staged agenda for resolving the crisis,” Professor Adei is quoted by citinewsroom.com to have said.

He continued to explain that “The second one is laying what we economists call the preconditions of development, what will propel us from thereafter, and then a long-term vision of the Ghana we want to be at least by 2057.”

In December 2022, Ghana experienced one of its worst economic downturns as it defaulted on making payments on most of its external debt, consisting of $30 billion.

The country has since been shut out from international capital markets and has now resorted to the domestic treasury bill markets for borrowing.

Ghana, which is currently under a 17th IMF bailout programme, on April 13, 2024, reached a staff-level agreement with the IMF Mission team on a second review that will pave the way for a third instalment of the bailout funds of $360 million.

IMF Mission Chief to Ghana, Stephane Roudet, during a joint presser held in Accra, however, urged Ghanaian authorities to secure a deal with its commercial and bilateral creditors for the IMF Management and Executive Board to approve the next disbursement.

MA/AE