Former President, John Dramani Mahama says the continuous depreciation of the cedi shows that the mid-year budget review failed to achieve its intended purpose.
He says investors still do not have confidence in the Ghanaian economy. According to him, this has resulted in the further downgrade of the economy.
There appears to be no end to the problems with the economy, with the recent downgrade to CCC+/C Junk status, a situation he insisted, the government has no idea of addressing.
Mr. Mahama has suggested that government urgently organizes forums for the best brains in the country to arrest the situation.
He noted that this will serve us well, even as the country prepares for debt restructuring and negotiation of an IMF programme.”
On August 5, 2022, S&P downgraded Ghana’s foreign and local credit ratings from B-B’ to CCC+C with a negative economic outlook.
According to S&P, the downgrade is due to intensifying financing and external pressures on the economy.
S&P Global Ratings said though government has taken steps towards consolidating the fiscal deficit, including the recent passage of the Exemptions bill, high borrowing costs and softening growth make it difficult to put debt to GDP on a downward path.