Ghana’s classification as a high debt distressed country caused by reckless, profligate gov’t expenditure - Ablakwa

The Member of Parliament (MP) for North Tongu Constituency, Samuel Okudzeto Ablakwa has indicated that he is not surprised Ghana has been classified as a high debt distressed country.

The World Bank has classified Ghana as a high debt distress country in its October 2022 Africa Pulse Report.

In the report, the World Bank projects that Ghana’s debt to GDP will hit 104% by end of the year.

This the World Bank says is according to widened government deficit, massive weakening of the cedi, and rising debt service costs.

“Debt is expected to jump in Ghana to 104.6% of GDP, from 76.6% a year earlier amid a widened government deficit, massive weakening of the cedi, and rising debt service costs. The country’s debt is expected to remain elevated at 99.7% and 101.8% of GDP in 2023 and 2024, respectively,” the World Bank report has said.

Reacting to the classification, Samuel Okudzeto Ablakwa has indicated that the country is where it is because the government refused to listen to several warnings against its profligate spending.

In a post on Facebook, the North Tongu MP said, “Ghana’s latest depressing classification by the World Bank as a high debt distressed country doesn’t come as a surprise. For years, we warned about the Akufo-Addo/Bawumia govt’s reckless & profligate expenditure patterns but they refused to listen.”

Despite the latest poor classification, the government is confident that it will reach a deal with the International Monetary Fund (IMF) very soon to step on the path to economic recovery to turn things around.