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As Ghana prepares for the upcoming December 7 elections, the nation faces a complex blend of economic and environmental challenges that require immediate attention.
The next government, whether from the incumbent New Patriotic Party (NPP) or the opposition National Democratic Congress (NDC), must navigate the difficult path of economic recovery while addressing pressing structural issues and a significant environmental crisis.
The elections come on the heels of a severe financial crisis in 2022, during which the government defaulted on foreign debt and faced a downgrade from Standard & Poor’s, restricting its borrowing capacity and leading to a decline in international reserves.
The Bank of Ghana intervened to lend to the government, exacerbating inflation and economic instability.
Once opposed to seeking assistance from the International Monetary Fund (IMF), the Akufo-Addo administration ultimately turned to the IMF for a bailout following the financial crisis, launching debt restructuring initiatives to regain fiscal control.
However, the inclusion of pension funds in domestic debt exchanges sparked public protests, forcing the government to reverse its decision.
Ghana’s current debt-to-GDP ratio positions it among the top ten most indebted countries in Africa, with a historical legacy of rapid economic growth now overshadowed by recurring debt distress.
Despite slight improvements in export performance and a narrowing current account deficit, the pressing need for economic diversification and sustainable revenue generation remains a key challenge that will demand urgent action from the next administration.
Story by: Gordon Addai Baffour / Pinkfmonlinegh.com