According to World Bank Country Director Pierre Laporte, the present economic issues may have begun before the Covid-19 hit.
In its January 2022 Monetary Policy Report, the Bank of Ghana said that the stock of public debt was equivalent to 78.4 percent of GDP at the end of 2021, up from 76.1 percent of GDP at the end of 2020.
As of November 2021, the country’s entire public debt stock was at around 344.5 billion, a position that analysts have termed alarming.
The Finance Ministry has said that if nothing is done to enhance income-generating methods, such as the approval of the E-levy, duties such as compensation of public sector personnel may become an issue.
The Minority has also accused the administration of mismanaging and misapplying funds, causing the economy to stifle and the fiscal space to decrease.
The government has blamed the Covid-19 on multiple occasions for the economy’s unsustainable debt levels.
The Minority has argued that the government is using the epidemic to excuse inefficiency, which the administration denies.
However, World Bank boss maintains that warning indications of an impending economic collapse were evident even before the worldwide pandemic struck.
“Yes, Covid has not helped but even before Covid, there were signs that the situation was getting a little more challenging,” Mr Laporte explained.
According to him, “He [Finance Minister] acknowledges the severity of the situation.”
He was speaking at a public lecture organized by the One Ghana Movement.
The World Bank also predicted that Ghana’s economy will suffer in the future.
This occurs as the exchange rate continues to grow in the face of rising inflation and the rising cost of living, as well as an increase in the price of petroleum products.
“The situation is very difficult right now. Ghana faces a very tough road ahead to restore macro-sustainability,” he said on Tuesday.
As a result, he urged the administration to be more forthcoming about its dealings with the country’s budgetary situation.
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SOURCE: myjoyonline
