An economist with the University of Ghana Business School (UGBS), Prof. Godfred Alufar Bokpin, says government’s failure to manage the economy prudently may be accounting for the country's current debt distress situation.

In an interview with JoyNews on Thursday, he added that government would have to take drastic measures to address the situation.

“If you look at it in relation to the other macro variables, we have seen some improvements, but we should not set a trap for ourselves in all these comparisons.”

“We should also be looking at in terms Ghana’s potential and our peers. When you do that, you realise we have not made significant progress,” he noted.

An article published by Bloomberg cites the high debt to GDP ratio and government's inability to secure passage of the e-transactions levy as an indication it may not have the political capital to pass revenue-raising measures in Parliament or rein in spending to reduce borrowing needs.

It also claims the situation is scaring away investors.

Investors are questioning whether Ghana - the region’s second-biggest economy - can sustain its debt levels if a surge in borrowing costs shuts it out of international markets.

Government debt climbed to 81.5% of gross domestic product at the end of last year, from 31.4% a decadeberg. 

That places Ghana among the most vulnerable credits to tighter U.S. monetary policy, despite strong economic growth.