Despite measures put in place by the Akufo-Addo-led government to salvage the dwindling economy, Ghana’s economic growth is expected to take a further downturn.
Presenting the 2023 budget on the floor of Parliament, the Finance Minister, Ken Ofori-Atta, disclosed that the country’s economic growth is expected to slow down by 2.8% in 2023.
A slower growth rate will likely expose Ghana’s vulnerable economy to a further decline.
The country is currently experiencing inflationary pressures and an exchange rate depreciation, resulting in a higher cost of living.
On top of this economic meltdown, Ghana’s Finance Minister revealed that the country is at high risk of debt distress.
Addressing lawmakers during his presentation dubbed “NKABOM” to wit, unity, Ken Ofori-Atta stated that “the current debt sustainability analysis conducted reveals that Ghana is now considered to be at high risk of debt distress.”
He, however, added that the government was determined to resolve the daunting economic challenges facing the nation.
Mr Ofori-Atta intimated that his government will soon reach an agreement with the International Monetary Fund (IMF) for a suitable relief package.
He said, “in the immediate term, we will work towards securing an agreement with the International Monetary Fund, execute the debt exchange programme, improve the management of foreign exchange, and support our local productive capacity for food security.”
Meanwhile, the government has announced some measures to reduce public expenditure in 2023
Among other things, the government has banned public officials from using V8s/V6s for cross-country travel.
Ken Ofori-Atta also announced a hiring freeze for civil and public servants and suspended non-critical projects.
He, thus, called for the support of the public, stating that “this is the time to rebuild, not to destroy and tear down. Let us work together for our collective benefit.”
Source: The Independent Ghana