Seth Terkper the former Ghana Finance Minister under John Dramani Mahama has advised Akufo-Addo- Bawumia government to give attention on homegrown policies to help revive the economy or get ready to return back to IMF.
Mr. Terkper who was speaking on Morning Starr on Tuesday monitored by apexnewsgh.com, said, what we have to do is not project higher growth figures and that will help us do a genuine budget.
“If the advanced economies begin to recover, their growth will increase the commodity they buy from us and that will also help us grow.”
His response came as a result of Credit rating agency Moody’s projected in its 2021 Sub-Saharan African (SSA) Outlook report that Ghana’s debt to GDP ratio will hit 80 per cent in 2021. Already, Ghana has gone above 70 percent.
According to the Credit rating agency Moody, they expect most SSA sovereigns to see their debt burdens rise further in 2021. “The average debt burden in the region will hover around 64% of GDP in the near to medium term compared to the 47% average in 2015-19”. They said.
Moody hinted that the country will be ranked second in Sub Saharan Africa with the greatest External Vulnerability Stress pressures.
“In SSA, higher external vulnerability indicators – which are a measure of short-term debt and upcoming external debt maturities against international reserves – will be more challenging for sovereigns outside of monetary unions. Zambia and Ghana will see the greatest EVI pressures, with 2021 levels forecast to be 509% in Zambia and 143% in Ghana”.
Meanwhile Mr Terkper said the government must pay attention to the warning by Moody’s because it is a very reliable rating agency.
Apexnewsgh.com/Ghana/Ngamegbulam Chidozie Stephen
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