Ghana is out of debt crisis – Economist claims citing August 2023 debt to GDP ratio

Dr. George Domfeh, a Development Economist and Research Fellow at the University of Ghana, has asserted that Ghana, under the leadership of President Nana Addo Dankwa Akufo-Addo and Vice President Dr. Mahamudu Bawumia, has overcome its debt crisis.

The economist pointed to recent fiscal indicators, emphasizing that the debt-to-GDP ratio stands at 64.4% as of August 2023, signifying a significant improvement.

Dr. Domfeh made these remarks following the presentation of the 2024 budget by finance minister Ken Ofori-Atta, who outlined the current economic landscape.

According to him, the data presented suggests that Ghana has effectively steered clear of the debt crisis that plagued the nation in previous years.

In an interview on Wontumi Radio, Dr. Domfeh asserted that during Mahama's tenure in 2014 and 2015, the country grappled with a debt crisis, prompting Ghana to seek assistance from the International Monetary Fund (IMF) in April 2015.

In contrast, he contended that Akufo-Addo's presidency, particularly in 2017, 2018, and 2019, saw the nation navigating a debt-free trajectory until the global upheavals caused by the COVID-19 pandemic in 2020.

"Under President Mahama in 2014, 2015, there were no crises facing the country, but we were in a debt crisis, which is why in April 2015, we went to the IMF.

“Under Nana Akufo-Addo in 2017, 2018, and 2019, there were no crises in the world, and Ghana was out of debt crises. In 2020, we started experiencing crises in the world that made us enter into debt crises.

“In 2021, we were in debt crises, 2022 we were in debt crises, but this year, at the end of August, Ghana is out of debt crises, if you read the budget, our budget says our current debt-to-GDP ratio is 66.4%, so we are below 70%, Ghana is out,” Dr Domfeh explained.

...as Prez @NAkufoAddo said "we know how to bring the economy back to life, what we don't know is how to bring Human Being back to life".

Today, under the leadership of President Akufo-Addo & Dr @MBawumia GHANA IS OUT OF DEBT CRISIS.

Ghana shall work again! pic.twitter.com/HYhPlrduG0

— Nana Hesse Ogyiri (@NanaOgyiri) November 27, 2023

Watch the latest edition of BizTech below:



Click here to follow the GhanaWeb Business WhatsApp channel

Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.