Economist and an associate of president Akufo-Addo, Professor Stephen Adei has pointed to the incessant borrowing by the government without the capacity to repay as one of the most significant contributors to the country’s economic crisis.
The former Ghana Revenue Authority (GRA) Board Chairman insists the country’s debt stock is what has become problematic for President Akufo-Addo’s neck.
“I think the biggest mistake they made is that they borrowed beyond our capacity to service it,” he told Joy News.
He made these comments on the sidelines of the Signature Market Pre-launch campaign at the Kwame Nkrumah University of Science and Technology (KNUST).
Prof Adei explained that even though exogenous factors such as the coronavirus pandemic and the Ukraine-Russia war played a role, overborrowing is the final nail that threw the country’s economy entirely out of gear.
“If you are a country and you borrow beyond your capacity, you will be in trouble, of course, COVID-19 came in, and the Russia-Ukraine [war]. But the reason why things got worse is because of these underlying mistakes they made and they must admit it”, Prof Adei explained
Prof Adei’s comment comes at a time the government has failed to take responsibility for the crushing economy.
Ghana’s debt to GDP is around 100%, throwing the economy off balance.
Experts believe the borrowing without proper investments is the reason the country is begging the International Monetary Fund for a bailout.