Audio By Carbonatix
Former Minority Leader, Haruna Iddrisu, says, the ailing Ghanaian economy will only recover after the Akufo Addo-led government has left office, insisting the mismanagement of the economy is so dire that only deep sacrifices coupled with stringent measures can help revive it.
The International Monetary Fund in May 2023 approved a $3 billion three-year loan package for Ghana after nearly a year of negotiations.
About $600 million was released to Ghana immediately.
The loan comes as the country faces interlocking fiscal, currency, reserves and inflation crises, with the cedi falling rapidly almost against the dollar over the past year. The IMF package imposes tough conditions on the Central Bank, requiring it to cut inflation, end monetary financing and rebuild foreign.
Haruna Iddrisu who is also the Member of Parliament for Tamale South said a future NDC government will have to renegotiate the deal.
“The economy will only recover post Akufo-Addo government because there is no way this economy will stabilise under the watch of President Akufo Addo and Finance Minister, Ken Ofori-Atta, because they have lost it. And as I understand, the Paris Club and China are yet to finalise their position on what to do with Ghana’s unsustainable debt and the countrys request for a common framework agreement and this should tell you an economic redemption is practically impossible under Nana Akufo Addo”, he stressed.
Haruna Iddrisu’s comments come at a time Fitch Solutions has stated that Ghana’s International Monetary Fund Programme will not be suspended despite a higher-than-budgeted expenditure.
According to its latest assessment of Ghana Titled “Positive Shift in Ghana’s Political Risk Profile Following IMF Programme Approval”, the UK-based firm said there is a risk the government will fail to meet its IMF targets in 2024.
Since the start of this decade, total expenditure as a share of GDP increased by an average of 3.0 percentage points during election years, signaling that some level of fiscal slippage is likely in 2024.
Nonetheless, Fitch Solutions, said a higher-than-budgeted expenditure is unlikely to lead to a suspension of the IMF programme.
Fitch solutions also said the opposition NDC is likely to win Ghana’s 2024 general election.
In its latest publication, the UK-based organisation explained that the deteriorating state of the economy witnessed mainly in 2022 and the perception of slow fight against corruption are likely to be the deciding factors for the electorate.
This prediction is consistent with a similar one made by the Economist Intelligence Unit which had equally cited the same factors as swaying the electorate toward the NDC.
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