Finance Minister prays for a miracle as economic conditions worsen
Minister for Finance, Ken Ofori-Atta, is hopeful of a revival in the Ghanaian economy as the country’s economic conditions continue to deteriorate.
Speaking at press briefing on Wednesday, September 28, the Finance Minister noted he is optimistic of a rebound of the economy, likening the country’s current situation to that of Ireland in the 1980s.
What is described as the Great Celtic Miracle in Ireland occurred in the 1980s when Ireland was one of Europe’s poorest economies and described as the “beggars of Europe“.
However, Ireland’s economic situation situation changed in the 1990s and its economy recorded an impressive average growth rate. Clearly, this is the same kind of miracle the Minister wants to happen to Ghana.
““The sanctity and the well-functioning of the financial system are sacrosanct and we need the support and trust of all Ghanaians to deliver this.
“The great Celtic Miracle in Ireland in the 1980s was the result of such collaborations, especially with Labour and we shall also be blessed with the Ghana Miracle,” the Minister said,” he remarked.
Ghana is currently pursuing a $3bn Balance of Payment support programme from the IMF.
This is after the country’s debt status has reached unsustainable debt levels threatening a debt default on bonds issued to investors.
The country’s debt issues has triggered a debt restructuring programme for investors, particularly local institutional investors – banks, pension funds, insurance companies etc.
The country’s headline inflation has hit a 21 year record high of 33.9%.
The local currency (cedi) has depreciated by more than 36% in value to the dollar making it the second worst currency in the world.
The country’s creditworthiness has been further downgrade by Fitch Ratings from “CCC” to “CC” in less than a month.
