PRESURE group calling itself Caucus for Democratic Governance, Ghana (CDG—Gh), has observed with shock that after three weeks of the Ghana’s economy was showing signs of collapse, as a result of stresses and strain from conoravirus (COVID-19) pademic.
In a statement signed and issued by the Executive Director for CDG-Gh, Dr E.K.Hayfod and copied to Bizzygh.com in Accra yesterday, the CDG-Gh stated that it is shocking because “we were often fed with excellent macro- economic figures with growth rate of between 6.4% to 8%.”
Ghana, according to the statement was proudly described as one of the best economies in Africa; robust, strong and one of the fastest growing in Africa.
The statement pointed out that it is therefore worrying to note the speed with which the country’s economy went on its knees, barely three weeks after COVID-19 pandemic.
It asked that “How is Ghana`s early call for a life line possible ; at a time when all our neighboring countries in Africa had not openly come out with any request ?
The statement indicated that the expects contend that Ghana`s national reserves must be able to keep “us floating for about three months, before any rescue attempt.”
“As I write, we have received 100 million from IMF. We have also received US $1billion from World Bank, the Heritage Fund is running out.
Our internally generated reserves for emergency situations like the COVID-19 is used up.This is what happens to a weak economy in crisis time,” it asserted.
The statement recalled that former President, Mr John Dramani Mahama often cautioned the Finance Minister for engaging in creative accounting, indicating that a number of debts are put under the base line to escape accounting.
This, according to the statement weakens the resilience of the economy.
It contended that when the baseline to GDP is changed, to induce flowery figures, that presupposes a robust economy, then the economy is bound to collapse in three weeks of strain and stress.
The statement said when the current government under President Nana Addo Dankwa Akufo-Addo borrows heavily (126 billion GHC in 3.5 years , the highest in the history of Ghana), the debt distress becomes high. When the debt distress is high, we have no option but to run quickly to IMF for rescue.
It noted that instead of the government aggressively embarking on austere measures of pruning down the size of the current government appointees, reducing taxes, reducing imports and investing in productivity to make saving, she is stampeding the resources of Bank of Ghana (BoG) to weaken the economy.
The statement indicated that
in an economy where BoG is forced to print 5,5 billion ghc to finance Government operations and is planning to print more; cannot be a robust economy.
“This action is a breach of the Bank of Ghana Act. Where the BoG is converted into extension of the Ministry of Finance, the foundation of the economy, with time, becomes weak,” the statement noted.
In an economy where figures on Internal reserves, the statement asserted that the fiscal Deficit of GDP and Primary Balance % of GDP are manipulated in the 2020 budget, the economy is programmed to go on its knees in three weeks of COVID-19.
The statement said the CDG-Gh is of the view that the economy is still in Intensive Care Unit.
It noted that the Ghanaians need serious restructuring processes to improve its resilience.
“We need a new Government with fresh ideas, and a new team led by former President John Mahama to do the right job,” the CDG-Gh stressed.
Source: Bizzygh.com Freeman KORYEKPOR AWLESU