Ghana’s Economy in Comatose …As IMF Report exposes gov’t Cooked Figures in 2020 Budget – Says CDG—Gh

The Caucus for Democratic Governance, Ghana (CDG—Gh), has revealed that Ghana’s is currently in comatose aftermath of the novel COVID 19 pandemic.

According to the group the much touted robust Ghanaian economy is on its knees struggling for breath just after three weeks of a partial lockdown, when other weak African economies are running.

CDG-Gh in a press release noted that Ghana was among the first few victims, to cry to IMF for a life line, three weeks after the COVID -19 with cooked figures which did not reflect in the 2020 budget statement.

 

“Government received first One Hundred Million Dollars ($100m) and a month later another One Billion Dollars ($1,000,000,000) was sourced from IMF.  As I write, Ghana Government is also negotiating with World Bank for a bail out. The question is: where are our internally generated reserves for emergency situations like the COVID-19?” the statement asked.

 

 

Below is unedited version of CDG-Gh’s Press Release

 

 

 

PRESS RELEASE                                                  11TH May 2020

 

COOKED FIGURES IN 2020 BUDGET VS FIGURES IN IMF REPORT

GHANA`S ECONOMY IN INTENSIVE CARE UNIT  

The Caucus for Democratic Governance, Ghana (CDG—Gh), is shocked to note that, our economy is showing signs of collapse, after three weeks of  stresses and strain , as a result of COVID-19. The so called robust Ghana economy is on its knees struggling for breath, when other weak African economies are running.

 

ONE BILLION DOLLARS 

The Ghana Government is among the first few victims, to cry to IMF for a life line, three weeks after the COVID -19. With cooked figures which did not reflect the 2020 budget statement, she received first one hundred million dollars ($100m) and a month later one billion dollars (1,000,000,000) from IMF. As I write, Ghana Government is also negotiating with World Bank for a bail out. The question is: where is our internally generated reserves for emergency situations like the COVID-19?

 

ROBUST ECONOMY

 Very often we are told Ghana has one of the best economies in Africa. The economy is proudly described as robust and one of the fastest growing economy in Africa.  However the speed with which our economy has run into crises, sending her to Intensive Care Unit shows the serious weaknesses in the economy. Sadly the so called weak economies in Africa have enough internally generated funds and are yet to call on IMF for help. Besides the pressure on economy in other countries in the world are far higher than in Ghana.

 

BELOW IS THE COOKED FIGURES IN THE 2018, 2019 BUDGET AND FIGURES IN IMF REPORT 2020 

     INDICATOR                    DATA FROM BUDGET                       DATA FROM IMF 

                                                       STATEMENTS                                    STATEMENT

          Date

 

2018

 

2019

 

2018

 

2019

 

Fiscal Deficit of GDP 3.0% 4.5% 7.0% 7.5%
 

Primary Balance (% of GDP)

 

-0.5%

 

-0.3%

 

-1.4%

 

-1.8%

Current Account

Balance (% of GDP)

 

-1.5%

 

-1.2%

 

-3.1%

 

-2.7%

Gross International

Reserves (millionsof US$

 

6.800

 

8.100

 

5.317

 

6.634

Source : Budget StatementS, Ghana(2019, 2020) and IMF Statement ( 2020)

 

FRAGILE ECONOMY

We have always suspected that our economy is fragile looking at the polished macroeconomic  figures which Government since 2017 has been presenting. Indeed experts on economy have often criticized the macroeconomic figures because it did not reflect the realities on the ground.  Prices of food items are so high. Fuel prices are high, transport prices are high, the cedi is rapidly depreciating, and yet we kept boasting of economic recovery until COVID-19 exposed the weaknesses in the economy.

 

CREATIVE ACCOUNTING

It  is always advisable to bite what you can chew. The Government out of cheap popularity stupidly started pumping all available reserves into the badly planned free Senior High School (SHS) project; thus weakening the basic structures upon which the economy is built. As if that was not bad enough, the Finance Minister was engaging in creative accounting, where a number of debts are put under the base line to escape accounting. To make things worse, this Government has borrowed heavily (about 90 billion GHc), the highest in the history of Ghana. The result is we have a high national debt of about 200 billion GHc. Functioning with such horrible economic parameters, leaves no other option but to rush the economy within three weeks to Intensive Care Unit.

 

                   

Dr E.K.Hayford

Executive Director

 CDG-GH

0277606338 / 0507694343

 

 

Story: Franklin ASARE-DONKOH

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