An Economist, Lord Mensah, has backed assertions of Ghana’s economy by the World Bank.
According to him, the World Bank being an external body gives an accurate measure of the country’s debts and growth prospects.
He noted that the stakeholders in Ghana do not capture the true state of Ghana’s situation in its accounting of the country’s debts.
“Being an external stakeholder of this economy, it is anticipated that once in a while, they’ll come and give us their perspective of the Ghanaian economy. And truly, what they said is a reflection of what is happening on the grounds,” he is quoted by myjoyonline.com.
He added that: “Looking at our debt, I think we’ve been calculating our debt without the contingent liabilities over the years, and if I say contingent liabilities, what I mean is the liabilities that have some inflows to them so we think it is not debt.”
“And we should know that all those inflows that are tied to this debt operate under a certain umbrella which is the economy. So, if the economy is not doing well, obviously those inflows will also be impaired and it can affect your debt payment,” Lord Mensah explained.
The World Bank in the latest report stated that Ghana is currently a high-debt-distressed country with a debt-to-GPD ratio of 104%.
Meanwhile, data released by the Bank of Ghana suggested that Ghana’s public debt stands at GH¢402 billion representing 68% of GDP.