The International Monetary Fund (IMF) in its latest report had indicted the erstwhile John Mahama administration for mismanaging Ghana’s economy which led to ex President John Mahama turning to the IMF for a $918 million loan to help stabilise the economy in 2015.
In 2015 under John Mahama, “Ghana’s economy was in trouble, hobbled by widening current account and budget deficits, rampant inflation, and a depreciating currency. Credit dried up as interest rates rose and banks’ bad loans piled up. At the root of Ghana’s woes was out-of-control government spending… In early 2015, Ghana turned to the IMF for a $918 million loan to help stabilize the economy” , the report said.
The IMF observed that the economy was badly mismanaged to a point that the Mahama government limited hiring and wage increases and eliminated subsidies for utilities and petroleum products. This led to unprecedented levels of unemployment among young graduates.
Akufo-Addo has turned things around
After the change of government in 2017, under Nana Addo Dankwa Akufo-Addo’s administration, Ghana’s finances have been put on a sounder footing, the new Public Financial Management Act has improved accounting standards, procedures, and technology according to the report.
“Ghana’s economy is now on the mend. The trade and budget deficits are narrowing. The pace of economic growth is poised to rise to 8.8 percent in 2019 from 2.2 percent in 2015. The inflation rate is projected to fall to 8 percent from almost 19 percent. Cuts to wasteful spending made room for much needed social services, such as free secondary education” IMF ended.