The Head of the Political Science Department of the KNUST, Professor Amoako Baah, says President Mahama’s promise of “calmer waters ahead” for the Ghanaian economy is in sharp contrast with the “reality on the ground."
He says the president’s remarks are not supported by the Central Bank’s position and view of the economy.
President Mahama told Ghanaians during this year’s Eid celebrations in Kumasi in the Ashanti region, Monday, July 28, that the ailing economy is bouncing back.
He gave the assurance that Ghanaians will begin to see positive results of government’s efforts at fixing the economy by the end of the year.
“We are all fully aware of the short-term economic challenges that currently face us as a nation. At the same time, our nation’s medium-term prospects remain very bright and positive. Several factors both internal and external are responsible for these challenges. As a government with a clear mandate to uphold the national interest.”
“We have had to implement some painful but necessary measures to protect the national economy and prevent a meltdown” the president stated.
Commenting on the president's assurances on Accra-based Asempa FM, Dr Baah said “ The president just spoke without any actual figures. I have figures from the Bank of Ghana signed by Dr Wampah, and they are at variance with the president’s position. They are in contrast with the situation on the ground. As we speak, our external debt is over 12 billion and now we being forced to privatize ECG; that alone tells you that we are in a desperate situation."
He said under the current circumstances, it is impossible for the economic outlook of the country to look bright as is being claimed by the president.
“If you have such huge deficit and you give me hope about the future without concrete strategy, then I cannot trust in it. The president spoke as a politician. Currently, the Bank of Ghana requires more than $1.5 billion dollars to stabilize the cedi,” he stressed; and this cannot be solved by wishful thinking.
Dr Amoako advised the government not to count too much on the $1.5 million Chinese Development Bank loan as it will not be able to fix the woes of the economy.
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