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'It's a short-lived fix' - Professor Hanke downplays Ghana's economic strides

Steve Hanke is a Professor of Applied Economics at Johns Hopkins University in the USA

Tue, 2 Jul 2024 Source: www.ghanaweb.com

A Professor of Applied Economics at Johns Hopkins University in the United States, Steve Hanke, has raised the alarm about Ghana's escalating debt, emphasizing that the country's underlying economic struggles continue to persist.

Hanke argues that the current measures are temporary solutions that fail to address the root causes of Ghana's economic woes.

In a social media post on July 1, 2024, he stated, "#SaveGhanaNow: The IMF praises Ghana's $13 BILLION debt deal as a 'positive step.'

Read another 'SHORT-LIVED' fix while underlying economic mismanagement persists.

Ghana = Sinking deeper in debt."

#SaveGhanaNow🇬🇭: The IMF praises Ghana's $13 BILLION debt deal as a "positive step."

Read: another "SHORT-LIVED" fix while underlying economic mismanagement persists.

GHANA = SINKING DEEPER IN DEBT. pic.twitter.com/ajpWXtKRTC
— Steve Hanke (@steve_hanke) July 1, 2024

Background:

In a joint press conference on July 1, 2024, the International Monetary Fund (IMF) Mission Chief for Ghana, Stephane Roudet, praised Ghana's progress under the IMF-supported post-COVID-19 Programme for Economic Growth (PC-PEG).

"Ghana's performance under the PC-PEG has been commendable," Roudet stated.

He highlighted Ghana's strong GDP growth of 4.7% in the first quarter of 2024, attributing it to effective fiscal policies and resilience amidst global challenges.

The Finance Minister, Mohammed Amin Adam, has also acknowledged the achievements and measures that have fueled the country's recent economic rejuvenation.

He reported that industry grew by 6.8%, agriculture by 4.1%, and services by 3.3% in Q1 of 2024, resulting in a GDP growth rate of 4.7%. According to him, this is the highest quarterly growth rate since Q1 of 2022 and markedly better than the 3.1% recorded in the same period in 2023.

AM/EK

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