'Ghana’s Economy In Limbo' – Finance Minister

The World Bank classifies every economy as low, middle or high income by Gross National Income (GNI) per capita as the basis for this classification because it views GNI as a broad measure that is considered to be the single best indicator of economic capacity and progress.

Ghana since 2012 when per capita income was about $1,820 was classified as a middle-income country but this classification masks wide gaps in infrastructural and human development.

With the interesting position as low-middle-income state, the country is not qualified for grants which is often meant for low-income countries.

That notwithstanding, the huge debt stock hovering around GHC130 billion, that is 73 percent debt to Gross Domestic Product (GDP) ratio also depletes the county’s creditworthiness hence affecting accessibility to loans.

This is a situation described as an unfortunate position by the Finance Minister Ken Ofori Atta, adding that it puts the country’s economy in limbo.

“We also fall in an interesting role as a lower middle-income· country which then takes us away from a number of grants; at the same time of a debt portfolio of 130billion of 73% also a debt to GDP also takes you away from the possibility of some loans. So you are caught in this limbo which really calls for an honest discussion,” he stated.

Mr. Ofori Atta was speaking at the World Bank-Ghana 60th anniversary at the World Bank Country Office in Accra.

The Finance Minister further enumerated some challenges confronting the country’s fiscal space while charging the Bretton wool institution to consider reforms to the deal with the issue of compensation payments which is affecting the smooth implementation of project.”