Ghana vows to remain proactive in addressing economic impacts of global crises

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People were walking at a market in Accra, the capital of Ghana, on July 14, 2022. (Photo by Seth/Xinhua)
People were walking at a market in Accra, the capital of Ghana, on July 14, 2022. (Photo by Seth/Xinhua)
Spining

The Ghanaian government pledged Monday to remain proactive in addressing the impacts of the twin global crises of COVID-19 and the Russia-Ukraine conflict on the country’s economy.

The Ministry of Finance made the pledge in a statement to respond to the recent downgrading of the Ghanaian economy by S&P Global Ratings.

“The government will remain proactive in addressing the impacts of these external headwinds on the economy and the livelihoods of Ghanaians,” said the statement.

The statement expressed disappointment at the S&P’s decision to downgrade the economy despite the government’s bold steps taken in 2022 to address the macro-fiscal challenges and debt sustainability issues, “which have been exacerbated by the global shocks on the economy.”

The statement recalled that the government had implemented critical revenue and expenditure measures in the first half of 2022, including the 30 percent cut in expenditure to address the challenges.

“The government is committed to and is confident that it will successfully emerge from the challenges in the shortest possible time as we have demonstrated the track record to do so,” added the statement.

On Aug. 5, the global rating agency downgraded Ghana’s foreign and local currency ratings from B-/B to CCC+/C with a negative outlook, citing intensifying financing and external pressures on the economy.

The Ghanaian government commenced discussions with the International Monetary Fund in July for a possible bail-out program to support economic recovery. Enditem

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