'The current state of the economy is neither good nor bad' – Chartered economist

Following Ghana's request for a bailout from the International Monetary Fund, chartered economist Prince Obiri Yeboah says the country's economy is neither too good nor too bad.

He claimed that, despite currently receiving IMF assistance, the cedi continues to depreciate against the dollar.

He described the current status of the economy as a mixed balance, something that cannot be praised or criticized.

Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he stated that the reason our economy is not too good is that, when you consider the situation of our cedi depreciation and Ghanaians' expectations, the cedi has depreciated by more than 30%, despite the fact that we are now receiving a bailout.

"As of December, when we were heading towards Christmas, the cedi was still selling around GH¢10.80, but as I speak with you currently, the real market price is hovering around GH¢14.80 or GH¢15. So if you compare the two and have the same expectations of Ghanaians to see a better improvement of our situation, it doesn't make it too good as a country."

He was, however, quick to add that others would also argue that the economic situation would have worsened more than it is now if we had not applied for the bailout from the IMF.

"So if you ask me about the summary of our current situation, I would say it is a mixed balance. It is something you cannot be so proud of or criticize that much. It is not too good for my liking. In all indicators, inflation keeps fluctuating up and down. Even though the Ghana Statistical Service releases its figures, when you compare them with the concerns of Ghanaians and the difficulties they go through, most often than not, they do not correlate with the figures from the GSS. So our situation is mixed and balanced."

He explained the multiplicity of factors that have caused our current economic crises, which he stressed were not caused by just one administration but that the problem has persisted from one government to the next.

"An assessment of our economic fortunes is very difficult to discuss because of the multiplicity of factors that have caused the problem. The problem is not also caused by a single administration. The problem has traveled from the past to our current administration. However, the managers of the economy have failed to exercise control over the situation. The economy will continue to struggle and face crises when incompetent people manage the economy.

"You remember Dr. Bawumia telling us that when the fundamentals are weak, the exchange rate will expose you. It was a valid statement he made. If you fail to manage the economy prudently, the reality of the economy will expose your incompetence. If we fail to deal with these challenges, we will continue to face these problems," he explained.