The World Bank’s assessment of Ghana’s economy, according to a finance professor at the University of Ghana Business School (UGBS), accurately reflects the situation on the ground. Professor Lord Mensah asserts that the World Bank’s most recent economic report is quite accurate. Benjamin Akakpo said that over the years, the debt of Ghana has been calculated in a method that does not accurately reflect the level of the nation’s debt in an interview with Benjamin Akakpo on the AM Show. He said that this is to blame for Ghana’s present economic turmoil.
As an external stakeholder in this economy, it is expected that they will occasionally visit and share their insights on the Ghanaian economy. Indeed, what they described reflects what is taking place on the grounds, he insisted. “Looking at our debt, I think we’ve been calculating it throughout the years without the contingent liabilities, and if I say contingent liabilities, what I mean is the obligations that have some inflows to them so we think it’s not debt,” Professor Mensah explained.
“And we should be aware that all of those inflows connected to this debt function under the economic system as a whole. Therefore, such inflows will also be hampered if the economy is struggling, which might have an impact on how much of your debt you have to pay. Professor Lord Mensah’s remarks come in response to the most recent World Bank report, which designated Ghana as a high debt distress country. Debt restructuring is necessary because a heavily indebted nation is unable to meet its financial obligations.
The country’s debt to Gross Domestic Product (GDP) is predicted to reach 104.6% by the end of 2022, according to the research. According to its October 2022 Africa Pulse Report, a widening government deficit, a considerable depreciation of the Cedi, and growing debt servicing expenses would cause debt to increase dramatically from 76.6% a year ago. Many concerned parties are now concerned about the future of Ghana’s economy as a result of these World Bank declarations. This is due to the fact that the nation is already in discussions with the International Monetary Fund (IMF) to carry out a debt sustainability review in light of the current economic difficulties.
Professor Lord Mensah commented on the matter and stated that in order to improve the situation, the government has to put more effort into its economic policies. Despite the difficulties, the administration insists that it is toiling diligently around the clock to improve the nation’s economy.