Indexing government scandals one at a time
The IMF has listed Ghana in the Category of the Highly Indebted Countries on its website.
The International Monetary Fund is forecasting a worrying 76.7% of debt-to-Gross Domestic Product ratio for the country this year, according to its Sub Saharan Africa Regional Economic Outlook report released today.
This put the nation in the high risk of debt distress country category. The nation’s debt-to-GDP ratio has been growing sharply, from 44% in 2016 to 58.3% in 2017and subsequently to 59.1% in 2018.
In 2019, the nation’s debt stood at 62.8% of GDP, about GHS217.9 billion.
Speaking on the development, Professor Bokpin, an Economist and Professor of Finance at the University of Ghana Business School said if the government continues to borrow and spend at the current rate they the economy will feel the negative impact after the elections.
“I am not surprised that we are back to HIPC. It’s can be understood and it can be explained. Currently, Ghana is spending 46% of its tax revenue generated in servicing its debt and it’s one of the highest in Africa. We’ll see the real effects of this after the election.”
Oct. 22, 2020
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