Many financial experts are worried about the country’s rising debt level, and many have warned the government to be careful about the consequences of this, which they say could lead the country into another debt trap.
According to the Summary of Economic and Financial Data from the Bank of Ghana, Ghana’s public debt rose by 9 billion from July 2022 to October 2022, bringing the total to 402.4 billion.
This is the same as 68 percent of the Gross Domestic Product, which is a big difference from what the World Bank says the ratio of debt to GDP will be in 2022, which is 104.6 percent.
In terms of dollars, the country’s debt was $53.2 billion in July 2022, down slightly from $54.4 billion in June 2022.
Ato Forson asks Akufo-Addo, “How will you bring down the level of public debt, which is so high that it can’t be paid?”
Because of this scary picture, the government is working with the International Monetary Fund (IMF) to get a bailout so that it can restructure the country’s debt.
As a newspaper, we were saddened by the government’s response when it was told that it had been borrowing money recklessly since 2017 for spending and not for investments that would pay for themselves.
The Akufo-Addo government has been borrowing a lot without having a clear plan for what to do with the money.
This has only made things harder for the people of Ghana.
After paying off its monthly debts, it’s no wonder that the country has trouble meeting its regular obligations.
We’ve taken out a lot of loans since 2017, but most of them haven’t been used for real projects.
We have nothing to show for it except that we now have debts.
Financial experts and rating agencies have already said that the country’s debt situation is bad news for the economy in the future.
President Akufo-Addo should listen to those who want him to cut the size of his government and, in turn, the cost of running it.
As the saying goes, he should cut his coat according to his clothes.
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