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Ghana’s economy is fine; we’re just in difficult times - Prof. Adei

The former Board Chairman of the Ghana Revenue Authority (GRA), Professor Stephen Adei has debunked claims that Ghana’s economy is collapsing.

Ghana's economy is only in difficult times - Prof Stephen Adei.

According to the economist, Ghana’s economy is only going through difficult times, but is very strong.

“... we are in difficult times; the country’s economy is stronger than the word broke,” he said in an interview with Joy News on Wednesday, March 16.

He also opined that the government must cut expenditure and live with its income.

“If you are exceeding your income, then you must accept to live below your income, which is the easy way, otherwise if you are earning GHC3,000 and you are in debt of GHC10,000 you cannot day to day spend GHC3,000. For you to get out of the rag you will have to cut your expenditure to GHC2,000 because you must service your debt. So we are in that situation as a country,” he said.

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Prof. Adei was also quick to add that even though it may be difficult for government to cut expenditure, especially in an election year, it’s the right thing to do to save the economy.

…And they [government] must thank God that this crisis has come now and not 2023, because if they don’t go for the hard one now, which normally will take about 18 months to go over this type of hunch, then they have a good chance by the middle of 2023 to see some good results in 2024. If not, things would get worse and they want to prevent being thrown out of government, they would be thrown out anyway,” he added.

The economist’s view of Ghana’s economy currently is contrary to that of another economist, at the University of Ghana Business School (UGBS), Prof. Godfred Alufar Bokpin, who has warned of possible collapse of the country's economy.

Prof. Bokpin says that the current debt situation of Ghana could get worse by the end of September if proper interventions are not implemented.

Ghana’s debt stock has hit high distress levels, standing at a staggering 341.8 billion Ghana cedis with a corresponding debt to GDP ratio of more than 77% as of September ending 2021.

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This means if the country should share this amount across the country’s 30.8 million population, everyone will owe approximately 11,000 Ghana cedis.

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