Politics

IMF loan won’t save Ghana’s economy – World Renowned Economist

In 2022, A renowned international economist at the Johns Hopkins University in the USA, Professor Steve Hanke, stated Ghana’s decision to enter an economic program with the IMF will not salvage the economy.

He predicts that a financial bailout from the Bretton Woods Institution is likely to fail just like the previous 17 IMF programs that Ghana has participated in.

In a July 2 tweet sharing his view on the government’s decision to commence formal negotiations with the IMF for a bailout, Steve Hanke questioned Ghana’s last-ditch effort to save the economy which is in distress and saddled with a huge debt burden.

“Today, I measure inflation in Ghana at a stunning 49.35%/yr. In a last-ditch effort, the government has begun negotiations with the IMF on a bailout deal. SPOILER ALERT: Another IMF loan won’t save Ghana’s economy. Like its past 17 IMF programs, a new one will fail.”

Today, I measure inflation in Ghana at a stunning 49.35%/yr. In a last ditch effort, the govt. has begun negotiations w/ the IMF on a bailout deal. SPOILER ALERT: Another IMF loan won’t save GHA’s economy. Like its past 17 IMF programs, a new one will fail.

 

In another separate tweet on July 2, the renowned American economist ranked the Ghana cedi in 16th place out of 18 other currencies on his Currency Watchlist – due to the persistent depreciation of the currency.

“#Ghana is in 16th place in this week’s Hanke’s #CurrencyWatchlist. By my calculations, the #cedi has depreciated ~29% against the USD since January 2020,” Steve Hanke shared.

“The Ghanaian cedi is a central bank junk currency,” the Johns Hopkins University economist added.

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