Mahama Will Fail The Economy By The End Of His Four Years – Seth Terkper

Former Finance Minister Seth Terkper has cautioned that Ghana’s economic recovery could be reversed if the government fails to address underlying structural weaknesses. Terkper previously served as an economic adviser to former President John Dramani Mahama.

During an appearance on JoyNews’ PM Express Business Edition, he explained that periods of economic stability are not permanent and require deliberate efforts to maintain them.

“Stability is never guaranteed,” Terkper stated, adding that governments must be prepared to deal with economic challenges throughout their terms in office.

His comments followed a warning from Mahama, who urged the government not to become complacent despite signs of improvement in the economy.

Terkper called for greater national savings to create financial buffers that could protect Ghana against future crises. He noted that building such reserves demands discipline and sacrifice but is necessary for long-term economic security.

He further stressed that successful economic management involves sustaining financial stability rather than simply achieving it temporarily.

Terkper expressed concern that Ghana’s tax-to-GDP ratio, estimated at around 15%, falls short of the 17% to 18% generally expected of a middle-income economy. He cautioned that removing import duties, even temporarily, could reduce government revenue and weaken the country’s finances.

Reflecting on taxes introduced during the COVID-19 pandemic, he acknowledged that emergency measures were necessary at the time but warned against depending on them repeatedly to address financial pressures.

He also raised concerns about Ghana’s ability to respond to future emergencies, including potential health threats such as Mpox. Terkper concluded that the country needs prudent fiscal policies, adequate financial reserves, and strategic long-term planning to withstand economic shocks.

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