President Nana Akufo-Addo has stated that he will not allow Ghana\u2019s economy to collapse under his watch, despite inheriting a challenging economy from the previous National Democratic Congress (NDC) administration.<\/p>\n
He gave the assurance while making some revelations on the state of Ghana\u2019s economy during his maiden State of the Nation Address to Parliament.<\/p>\n
State of economy<\/strong><\/p>\n The President revealed that, the \u201creality of Ghana\u2019s finances are quite stark as a result of policy choices.\u201d<\/p>\n According to him, \u201cwe find ourselves in the situation where Ghana\u2019s total revenue is consumed by three main budgetary lines. Wages and salaries, interest and payments and amortisation and statutory payments.\u201d<\/p>\n These three items alone, according to him, account for 99.6 % of Ghana\u2019s revenue.<\/p>\n He said the alarming situation will require his administration to resort to borrowing to finance government projects.<\/p>\n \u201cThis means that anything else that government has to do outside of these lines would have to be financed by borrowing or aid. After eight years of the previous government, there is practically no fiscal space left. The persistent resort to borrowing for any additional expenditure is also not sustainable. We cannot continue this way with our public finances. I will not allow this economy to collapse under my watch.\u201d<\/p>\n Despite highlighting these challenges, the President said his administration \u00a0will “reduce significantly the fiscal deficit this year.\u201d<\/p>\n Ghana\u2019s economic growth declining<\/strong><\/p>\n According to him, Ghana\u2019s economic growth has also declined significantly.<\/p>\n \u201cNotwithstanding the record amount of financial resources of the disposal of the previous government, Ghana\u2019s GDP growth in 2016, including oil, is estimated at 3.6 percent. This is the lowest GDP growth in about 23 years,\u201d he said.<\/p>\n Economy under Mahama<\/strong><\/p>\n Statistics from the Bank of Ghana as at September 2016, shows that, President Akufo-Addo inherited an economy valued at GHc44, 608.1 million from the erstwhile John Dramani Mahama administration.<\/p>\n In his last State of the Nation Address in January 2017, Mr. Mahama among other things, explained that under his tenure, the cedi\u2019s depreciation was around 4% in 2016.<\/p>\n He also added that, the public sector debt stock dropped from 72% to 35%. According to the former President, Ghana continues to be West Africa\u2019s second largest economy with a Gross Domestic Product (GDP) of almost $39 billion.<\/p>\n –<\/p>\n By: Marian Ansah\/citifmonline.com\/Ghana
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