CONTRARY to government’s denial of a weakening
economy, Business Finder can confirm that the same government has admitted
difficult economic times to the International Monetary Fund (IMF).A
letter to the Fund, dated September 16, 2016 and signed jointly by Finance
Minister, Mr Seth Terkper and central bank Governor, Dr Abdul-Nashiru Issahaku
referred to slow economic growth and gross financing needs as having continued
into 2016 from 2015.
“Economic conditions have been difficult, owing to
slow economic growth and tight financing conditions. Weak commodity prices, a
shortfall in cocoa production and unreliable electricity supply contributed to
the 2015 economic slowdown,” the letter said.
It will be recalled that
the third review of Ghana’s programme with the IMF and subsequent approval of
the third tranche of the US$918 million Extended Credit Facility (ECF) were
delayed following government’s failure to meet some critical targets contained
in the programme.
The letter was therefore to assure the Fund that
government’s fiscal consolidation remained on track and further to persuade the
IMF Executive Board to complete the review and approve release of at about
US$116.2 million to shore up the country’s reserves.
Mr Terkper and Dr
Issahaku further gave assurance that efforts were underway to address the
challenges that had occasioned the deviations in targets.
“We are taking
corrective steps to address the slippages for end-2015 PCs on net domestic
assets and the wage bill, which were missed by a small margin. We also stepped
up structural reforms,” the letter assured.
Government has vehemently
denied that Ghana’s economy is in crisis as it continues to tout its
achievements as impeccable and makes a case for re-election in December this
year.
While on his campaign tours, the President, Mr John Dramani Mahama
has defended is government’s management of the Ghanaian economy, claiming that
the nation’s economy had become resilient under his presidency.
He has
urged Ghanaians to ignore what he described as “propaganda” by his critics that
the economy is in crisis.
The President’s comments have been prompted by
increasing concerns from economists as well as opposition political parties of
his economic management record, especially Ghana’s increasing national debt
which they have warned could sink the economy.
Economist, Dr Lord Mensah
of the University of Ghana Business School at Legon criticised government’s
posture, saying it was hypocritical.
“This is evidence of the fact that
managers of the economy do not know where the economy is headed; the uncertainty
about the economy is a major disincentive to the business community,” he pointed
out. |
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