‘Our Economy Is In Great Difficulty . . .We’re In a Crisis’, As Akufo-Addo Outlines Recovery Measures | Economy

President Nana Akufo-Addo has assured Ghanaians that his government is working tirelessly to ensure the current economic hardship is curtailed.

“The whole world is being taken aback . . . economies big and small have experienced over this year alone the highest rise and cost of living over a generation,” he said. 

He asked Ghanaians for their support to get the economy back into good shape.

In an address to the nation on Sunday, 30th October, 2022, the President said, “for us in Ghana our reality is that our economy is in great difficulty, the budget drawn for the 2022 fiscal year (that is this year) has been thrown out of gear, disrupting our balance of payment and debt sustainability, and further exposing the structural weaknesses of our economy. We are in a crisis, I do not exaggerate when I say so . . . “.

“The basic problem we face is we are not making as much money as we need to spend . . . not enough of us are paying our taxes, not enough of us are producing to generate the revenues that we need, nevertheless my ambitions for Ghana remain high . . .” he said during a national address on Sunday.

Government retreat at Peduase Lodge

He said government has taken some firm decisions to put us on the path that will take the nation out of the current economic difficulty.   

Some of Outlines to be taken

• To restore and sustain debt sustainabilty: He said government plans to reduce our total public debt to GDP ratio to some 55% in present value terms by 2028. With the servicing of our external debt, not more than 18% of our annual revenue also by 2028.

• Aiming to restore and sustain macroeconomic stability within the next 3 to 6 years. Focus on ensuring debt sustainabilty to promote durable and inclusive growth while protecting the poor.

• Review reforms in Energy sector

• Capping of statutory funds

• Implementation of the exemptions Act

• New Property rate regime 

• Continuation of the policy of 30% cut on the salaries of political office holders; President, Vice President, Ministers, Deputy Ministers, MMDCEs and SOE appointees in 2023. 

• 30% cut in discretion expenditures of Ministries, Departments and agencies.

• Review the standards required for imports into the country.

Actions taken thus far

• Enhanced supervisory action by the Bank of Ghana in the Forex Bureau Market and the Black Market to flush out illegal operators

• Fresh inflows of dollars are providing liquidity to the foreign exchange market in addressing the pipepline demand

• Bank of Ghana has given its full committment to the commercial banks to provide liquidity to ensure the wheels of the economy continue to run in a stabilize manner till the IMF programme kicks in and the financing assurances expected from other partners also come in.

• Government is working with the Bank of Ghana, all producing and Mining companies to introduce a new legal and regulatory framework to ensure that all foreign exchange and from operations in Ghana are initially paid to Banks domiciled in Ghana to help boost the domestic foreign exchange market.

• Bank of Ghana will continue and enhance its gold purchase programme. 

Watch the full address below