As the dissolution of the 7th parliament takes hold and paves way for the inauguration of the 8th Parliament of the Fourth Republic and the investiture of Nana Akufo-Addo, the President-elect, a strong economic test awaits his presidency. Will he pass or will he fail? That is the question.
State of Ghana’s present Economy
Already, the economic challenges brought upon by the financial sector crisis and the recent pandemic has brought about a Gross Domestic Product (GDP) growth rate cut from 6.3% to 0.9% in 2020, a contraction in the economy that pushed the fiscal deficit from an early estimate of 4.7% of GDP to 11.4% of GDP and led to a debt level that exceeded the sustainability threshold (71% of GDP).
A harsh economic ride certainly awaits the president-elect who faces a hung parliament and the legitimacy of his re-election being contested at the Supreme Court.
- The Financial Sector
In Akufo Addo’s last State of the Nation Address to Parliament on the 5th of January, 2021, Akufo Addo cited the financial sector as
Akufo Addo cautioned Ghanaians to be wary of offers that “sound too good to be true.”
- Covid-19 Pandemic
Having to face what he calls “the most difficult problem,” the impact of the COVID-19 pandemic will certainly exacerbate the headache of reviving the economy.
With the roll-out of such initiatives as the COVID-19 Revitalization of Enterprises Support (CARES) Programme, the Ghana Incentive-based Risk Sharing Agricultural (GIRSAL) and the stimulus packages being administered by the National Board for Small-Scale Industries (NBSSI), we certainly hope that remains a priority to ensure the economy bounces back to Pre-COVID levels.