Education Minister Haruna Iddrisu has directly attributed Ghana's current economic difficulties to excessive borrowing under the previous Akufo-Addo administration. He stated that this borrowing 'cracked' the Ghanaian economy, leading to a state of debt distress. Mr. Iddrisu made these remarks on JoyFM on Tuesday, October 13.
The minister criticized the former government's handling of public debt, suggesting their silence on current economic indicators implies an admission of improvement under the present administration. He emphasized that the high appetite for borrowing made Ghana debt-unsustainable. This situation forced the country into a difficult financial position, requiring significant recovery efforts.
Ghana has faced considerable economic headwinds in recent years, including high inflation and a depreciating currency. The nation entered into a GHS 3 billion Extended Credit Facility program with the International Monetary Fund (IMF) in May 2023 to help restore macroeconomic stability. This program aims to address public debt, reduce inflation, and support economic growth. The government's fiscal consolidation efforts are central to this strategy, focusing on revenue mobilization and expenditure rationalization.
Mr. Iddrisu defended the current Mahama administration's economic performance. He highlighted improvements in currency stability, which he stated has helped businesses plan and manage their operating costs more effectively. He noted, "We are doing our utmost best as a government to walk out of that economic crisis. Now we have achieved stability." This stability is crucial for investor confidence and long-term economic planning.
These comments arrive as the International Monetary Fund (IMF) has raised Ghana’s economic growth forecast for 2026 to 5.7%. This projection represents an increase of 1.1 percentage points from the 4.6% forecast in April. The IMF also projected year-end inflation at 4.8%. These figures were released in the IMF’s latest economic outlook report, presented on the sidelines of the Annual IMF/World Bank Meetings in Bangkok, Thailand. The improved outlook suggests a potential recovery path for the Ghanaian economy, despite ongoing global uncertainties.
The minister's statements underscore the ongoing political debate surrounding economic management and public debt in Ghana. Future economic policies will likely continue to focus on sustainable debt management and fiscal discipline. Investors and citizens will closely monitor the government's ability to maintain currency stability and achieve the IMF's growth and inflation targets. The upcoming national budget and monetary policy decisions by the Bank of Ghana will provide further insights into the country's economic trajectory. Achieving the 5.7% growth target for 2026 will require sustained reforms and prudent financial management.