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Tag: Steve Hanke

  • Akufo-Addo has passed the begging bowl to South Korea – Economist reacts to $2bn agreement

    Akufo-Addo has passed the begging bowl to South Korea – Economist reacts to $2bn agreement


    Renowned US economist, Professor Steve Hanke, has criticized president Akufo-Addo’s continuous reliance on borrowing from international communities rather than implementing sustainable economic reforms to salvage the economy.

    Taking to the X platform, he argued that such agreements only deepen Ghana’s debt burden and fail to address fundamental economic challenges.

    “#SaveGhanaNow: Ghana recently secured a $2bn framework agreement with South Korea. Pres. Akufo-Addo passes Ghana’s BEGGING BOWL – ONCE AGAIN,” he wrote.

    His comment comes after Ghana recently secured a significant boost for its developmental initiatives through the signing of a $2 billion framework arrangement with South Korea’s Economic Development Cooperation Fund (EDCF).

    The agreement, formalized on the sidelines of the 2024 Korea-Africa Summit, is set to boost the implementation of Ghana’s key priority programs spanning various sectors such as infrastructure, agriculture, health, education, energy, roads and transport, as well as ICT over the next five years.

    This milestone signing ceremony marks a reaffirmation of the enduring bilateral economic development partnership between the two nations.

    The Minister for Finance, Dr. Mohammed Amin Adam, represented the government, while Mr. Cho Tae-yeol, the Foreign Minister for Korea, signed on behalf of the Government of the Republic of Korea.

    The event was attended by Ghana’s Foreign Minister, Shirley Ayorkor Botchwey, alongside other dignitaries from both countries.

    Meanwhile, on Friday, February 3, 2023, President Akufo-Addo urged Germany to play a facilitating role in encouraging China, an ad hoc member of the Paris Club, to support Ghana’s debt restructuring efforts.

    During a meeting with the visiting German Finance Minister, Christian Lindner, at the Jubilee House in Accra, Akufo-Addo emphasized the importance of the Paris Club swiftly establishing a creditors committee, with the participation of other official creditors, to assist Ghana in its efforts to restore economic growth.

    Mr Lindner, leading a delegation from Germany, engaged in bilateral discussions with President Akufo-Addo aimed at enhancing relations and economic cooperation between the two countries.

    President Akufo-Addo expressed his government’s primary focus on concluding negotiations with the International Monetary Fund (IMF), particularly at the Board Level, and finalizing a deal with the Bretton Woods institution by mid-March of the same year.

  • Richard Ahiagbah accuses Steve Hanke of peddling falsehoods for personal gain

    Richard Ahiagbah accuses Steve Hanke of peddling falsehoods for personal gain

    Director of Communication for the New Patriotic Party (NPP), has strongly criticized American professor of Applied Economics at Johns Hopkins University, Steve Hanke, for his ongoing critique of the administration led by President Nana Addo Dankwa Akufo-Addo.

    Ahiagbah’s remarks were prompted by Hanke’s consistent criticism of the NPP government, particularly on platforms like the platform formerly known as Twitter.

    In response to one of Hanke’s recent posts, Ahiagbah took to Twitter, accusing Hanke of lacking credibility and suggesting that his motivations are more financial than rooted in genuine concern for Ghana.

    Ahiagbah remarked, “Steve Hanke will do anything, including peddling falsehoods, to make a living. It is not as if Steve, you care about Ghana; you are merely promoting this falsehood by opposition elements in Ghana for money. Steve Hanke lacks all credibility…”

    Using Twitter as a platform, Professor Steve Hanke has been an outspoken critic of the NPP government on social media.

  • Steve Hanke labels BoG Governor as a “masterclass in monetary mismanagement

    A Professor of Applied Economics at Johns Hopkins University, Professor Steve Hanke, has criticized Bank of Ghana (BoG) Governor Ernest Addison, characterizing his tenure as a “masterclass in monetary mismanagement.”

    Professor Hanke’s critique comes amid the backdrop of the #OccupyBoG protest organized by a minority of parliament members demanding the resignations of the governor and his deputies, along with the reversal of a controversial Bank of Ghana building project.

    Taking to Twitter, Professor Hanke expressed his support for the #OccupyBoG protest, which witnessed thousands of Ghanaians taking to the streets of Accra to demand the resignation of Ernest Addison and his deputies.

    His tweet read, “#OccupyBoG: Today, thousands of Ghanaians took to the streets of Accra to demand the resignation of Ernest Addison, Ghana’s central bank governor. GOV. ADDISON = A MASTERCLASS IN MONETARY MISMANAGEMENT.”

    Ghana’s economic challenges have been a prominent issue in recent months, marked by soaring inflation, currency depreciation, a decline in living standards, and a high cost of living.

    The government has attributed these challenges to the aftermath of COVID-19 and the Russia-Ukraine war, subsequently securing a $3 billion IMF loan, with an initial $600 million tranche credited to the government’s account.

  • Another IMF programme will not save Ghana – Steve Hanke

    Professor of Applied Economics at Johns Hopkins University in the United States, Steve Hanke, has stated that the recently agreed IMF agreement won’t resolve Ghana’s issues.

    The Economics Professor who has been monitoring the country’s economic performance for some time now said Ghana’s current inflation stands at 50% almost 5% higher than the rate announced by the Ghana Statistical Service in May 2023.

    Prof. Hanke has bemoaned the fact that the computation by the Ghana Statistical Service does not reflect the true state of the country’s inflation.

    He also added that another IMF deal will not solve Ghana’s problems since the country had been to the Fund severally without seeing any growth and improvement in the country.

    On June 11, 2023, he wrote on Twitter: “Today, I measured inflation for #Ghana at 50%/yr. Another IMF program won’t save Ghana. After all, all of Ghana’s past IMF programs have failed. Why would a new one work?”

    Ghana has secured a $3 billion loan facility from the International Monetary Fund to aid in its economic recovery.

    The 3-year programme is expected to restore macroeconomic stability and boost the country’s balance of payments among other things.

  • The 5 corrupt African countries will squander the $100 million security aid from US – Prof Hanke

    The 5 corrupt African countries will squander the $100 million security aid from US – Prof Hanke

    Steve Hanke, a Professor of Applied Economics at the Johns Hopkins University, has raised concerns about the $100 million security assistance the United States will be giving to five West African countries, including Ghana.

    In a tweet shared, on Wednesday, March 29, 2023, Prof Hanke suggested that the assistance the US will be giving to these countries will be squandered.

    He said that the level of corruption perception of the five West African countries are terrible.

    “US Vice Pres. Harris announced that the US will provide $100m over 10 yrs to help West African countries like Ghana, Benin, Ivory Coast, Guinea, and Togo. The average Corruption Perception Index for these countries is terrible: ~35/100. Need I say more?” parts of the tweet the academic shared.

    The Vice President of the United States of America, Kamala Harris, announced a $100 million security assistance to five West African countries, including Ghana.

    The other beneficiaries of the $100 million security grant include Benin, Guinea, Côte d’Ivoire, and Togo.

    In a tweet shared on Tuesday, March 28, the US vice president said that Africa is vital to global security.

    She added that the aid is to support the prevention of conflicts and aid efforts to stabilize security in the countries along the coast of West Africa.

    “African nations, including Ghana, play a critical role in global security. Today, I am pleased to announce $100 million in support for Ghana, Benin, Guinea, Côte d’Ivoire, and Togo to support conflict prevention and stabilization efforts in Coastal West Africa,” parts of the tweet read.

    View Prof Hanke’s tweet below:

  • Ghana’s economy still in a “death spiral – Prof. Steve Hanke

    Ghana’s economy still in a “death spiral – Prof. Steve Hanke

    Steve Hanke, a professor of Applied Economics at the John Hopkins University in the United States, has issued a warning that Ghana is headed down the road to economic ruin.

    For his most recent assessment of the economy, the academic who has recently released negative judgements on Ghana’s economy used inflationary data.

    He maintains that the Ghana Statistical Service was producing inflation estimates that were significantly lower than the true rate, calling the rate “rubbish.”

    “Ghana’s economic death spiral just continues to spin. Today, I measure inflation in Ghana at a stunning 84.95%/yr, ~1.58x the Ghana Statistical Services’ phony official rate. The GSS is producing RUBBISH,” Hanke tweeted on March 11.

    Government working to attain IMF bailout

    Government run to the International Monetary Fund (IMF) in 2022 at a time the economy was in a downward spiral.

    The government only recently secured a Domestic Debt Exchange Programme (DDEP), which according to experts is a major conditionality of the lender in granting Board approval for a US$3 billion bailout.

    The programme was meant to ensure the streamlining Ghana’s unsustainable debt. Government announced an 85% participation rate.

    Ghana is hoping to get the first tranche of the bailout by March this year in order to among others rein in inflation and arrest the galloping depreciation of the cedi.

    Talks are currently underway with Ghana’s external creditors in a bid to restructure loans in order to get IMF Board approval in March 2023.

  • Ghana Cedi is a “junk money” in serious trouble – Prof. Hanke

    Ghana Cedi is a “junk money” in serious trouble – Prof. Hanke

    The cedi, the national currency of Ghana, is expected to collapse, according to American professor of Applied Economics Steve Hanke.

    He supported his allegation regarding the cedi by citing the currency’s ongoing decline since January 1 versus the US dollar.

    Hanke hinted that the local currency was essentially “junk” in a tweet that was accompanied by a graph illustrating the cedi’s course of decline since 2020.

    “The cedi is in serious trouble in Ghana. According to my calculations, the cedi has declined against the USD by 49.32% since the start of 2022.
    Ghana has allowed my collection of renegade currencies to keep expanding “He wrote in a tweet.

    Cedi exchange rate against US dollar: February 6, 2023

    The Interbank forex rates from the Bank of Ghana today, February 6, 2023, have shown that the Ghana Cedi is trading against the dollar at a buying price of 10.7936 and a selling price of 10.8044.

    As compared to Friday’s trading of a buying price of 10.7941 and a selling price of 10.8049. At a forex bureau in Accra, the dollar is being bought at a rate of 12.00 and sold at a rate of 12.70.

  • Prof. Hanke estimates that the inflation rate in Ghana is 77%.

    Prof. Hanke estimates that the inflation rate in Ghana is 77%.

    Steve Hanke, an American economist, has highlighted the issues afflicting Ghana’s economy and renewed the need for a currency board to rein in the country’s spiraling inflation.

    Hanke calculated inflation (using his independent global tracker) to be 77% in a tweet from January 10, 2023, which is 27 percentage points higher than the stated rate of 50%.

    He used the phrase “going down the tubes” to emphasize that the current problems indicated that the economy was doomed to disaster.

    “Ghana is in 8th place in this week’s inflation table. On Jan 5, I measured Ghana’s #inflation at a stunning 77%/y. #Ghana’s economy is going down the tubes. To rein in inflation, GHA must install a currency board,” his tweet read.

    It is not the first time he is calling for a currency board to be put in place to help salvage the economy.

    Hanke has also been very critical of government’s resort to the International Monetary Fund (IMF) amid an economic crunch that government has partly blamed on aftershocks of the COVID-19 pandemic and the Russia-Ukraine war.

    Ghana had a torrid 2022 amid an economic crisis that forced government to seek an IMF facility at a time the cedi was rapidly depreciating, inflation was galloping and government was faced with multiple downgrades by rating agencies.

    Government has promised to turn around the economic fortunes of the country after sealing a Staff-Level agreement with the IMF with the hope that funds from the US$3 billion facility will be released early this year.

  • ‘A debt crisis looms on the horizon in Ghana’ – Prof. Steve Hanke warns

    The current economic condition in Ghana will lead to a debt crisis, according to Steve Hanke, a professor of Applied Economics at Johns Hopkins University in the United States.

    Hanke, who has shown a particular interest in shedding light on the world’s economic troubles, claimed that Ghana is facing an impending debt catastrophe, which has led the nation to potentially seek economic assistance from the IMF for a 17th time.

    The government revealed plans for a domestic debt exchange program on December 5, which will let bondholders freely exchange their notes for new ones.

    The move meant that Ghana is inviting eligible holders to exchange GH¢137.3 billion of the domestic notes and bonds, including Energy Sector Levy Act Plc and Daakye Trust Plc, for a package of New Bonds to be issued.

    Following the announcement, Prof. Hanke on his Twitter expressed further concern about Ghana’s local currency which he noted has depreciated by 56 percent since 2020.

    He further described Ghana’s local currency as ‘junk’ – meaning the cedi’s value is unreliable on both the international and domestic markets.

    “A debt crisis looms on the horizon in #Ghana. Since January 1st, 2020, the #cedi has depreciated ∼56%. Thanks to Ghana, my rogue’s gallery of JUNK CURRENCIES just keeps growing,” he wrote on December 4, 2022.

  • What is Ofori-Atta’s plan to save Ghana’s economy – Prof Hanke asks

    Steve Hanke, a professor of Applied Economics at the Johns Hopkins University and founder and co-director of the Institute for Applied Economics, is asking how the government of Ghana will be saving the country’s economy from collapsing.

    According to him, it will not be prudent for Ken Ofori-Atta, the finance minister, to be fabricating the country’s numbers just to look good in the eyes of the international community and investors.

    He tweeted that on his economic dashboard, Ghana’s inflation is now being measured at 158 per cent.

    “Today, I measure #Ghana’s inflation at a stunning 158%/yr. What’s Finance Minister Ofori-Atta’s plan to save the economy? Will Ofori-Atta just fabricate the numbers? Apparently, he’s done that before,” Prof Hanke said.

    The economist was commenting on claims by the minority that Ken Ofori-Atta since he was appointed the finance minister has been presenting inaccurate figures to Parliament.

    Mohammed-Mubarak Muntaka, Asawase MP, while debating on the need for Parliament to pass a vote of censure on the finance minister indicated that “In 2018 he reported to this house that the fiscal deficit was 3.9% of GDP when he had to report to the World Bank the actual was 7.1% of GDP.

    “In 2019, he reported that the fiscal deficit was 4.8% when the actual to be reported to the International Monetary Fund the actual was 7.1% to GDP.

    “In 2022, he reported that the fiscal deficit was 11.7% of GDP when the actual was 17.2 %. In 2021 he reported 9.2% when the actual was 12.4%.”

    The Minority Chief Whip was of the view that the finance minister has shown beyond doubt that he is not able to the finances of the country, thus must be removed.

    “What are we waiting for, from this Minister before we will now believe the time has come for him to exit? I am reliably informed that he is part of the impediment that is not making us conclude the negotiations with the IMF,” Mohammed-Mubarak Muntaka stressed.

    Today, I measure #Ghana‘s inflation at a stunning 158%/yr. What’s Finance Minister Ofori-Atta’s plan to save the economy? Will Ofori-Atta just fabricate the numbers? Apparently, he’s done that before. https://t.co/0aoSccTto7

    — Steve Hanke (@steve_hanke) November 13, 2022

  • Currency board can give Ghana cedi lasting stability – Dr. Kwakye supports Prof. Hanke

    Dr. John Kwakye, Director of Research, Institute of Economic Affairs (IEA), has backed up US-based economist and Johns Hopkins University Professor Steve Hanke’s claim that the Ghana cedi can only be stabilized by a currency board.

    He thinks the cedi can have long-term stability under a monetary structure akin to a currency board.

    However, Dr. Kwakye cautioned that the economic administrators must establish the currency board gradually.

    I concur with Prof. Hanke that the cedi can only have long-term stability under a monetary system akin to a currency board.
    But we should advance in that direction gradually.
    The complete modalities can be figured out, according to a 3news report by Dr. John Kwakye.

    Prof Steve Hanke, a US-based economist, has consistently called for installing of a currency board if the managers of the Ghanaian economy want the Ghana cedi, which has depreciated against the US dollar to stabilise.

    He noted in his October 20 tweet that the cedi has depreciated by 43.98% against the US dollar since January 2022 to be placed 4th on his weekly Hanke’s currency watchlist.

    He said, for the cedi to gain its strength and appreciate against the US dollar, the President together with the managers of the Ghanaian economy must install a currency board.

    “The Ghanaian cedi has depreciated against the USD by 43.98% since Jan 2022, which is why #Ghana takes the 4th place in this week Hanke’s #CurrencyWatchlist. To save the cedi, GHA must install a #CurrencyBoard, NOW,” Prof. Steve Hanke’s tweeted.

    The Cedi has recently been classified by Bloomberg as the worst-performing currency against the US Dollar.

    Currently, the Cedi is trading at above GH¢14 to a dollar at some forex bureaus. The depreciation rate is a contributory factor for the ongoing shop closures ordered by the Ghana Union of Traders Association (GUTA).

    According to the group, the fast depreciation of the Cedi is eroding their profits and also increasing the cost of doing business.

  • Thanks to Akufo-Addo, Ghana’s economy is in the tank – Prof. Hanke

    According to Steve Hanke, founder and co-director of the Institute for Applied Economics and professor of applied economics at Johns Hopkins University, Ghana’s economy is currently in free fall.

    He claims that as of Sunday, October 22, 2022, the country’s inflation rate in West Africa is 109 percent.

    The Ghana Statistical Service calculated the inflation rate for September to be 37.2%, which is in contrast to Prof. Hanke’s estimate of inflation.

    In a tweet sighted by GhanaWeb, the economist reiterated his point that it is only a currency board that can help stabilise the depreciation of the Ghana cedi against the US dollar.

    He noted that just as the then Gold Coast had a currency board between 1913 to 1958, present-day Ghana needs a currency board else debt default is just around the corner.

    “Thanks to Pres. Akufo-Addo, #Ghana’s economy is in the tank. Today, I measure Ghana’s inflation at a stunning 109%/yr. Without a currency board, like the one the Gold Coast had (1913-1958), debt default is just around the corner,” Prof Steve Hanke tweeted.

    Prof Hanke’s assertion that a currency board can stabilise the cedi has been reaffirmed by Dr. John Kwakye, Director of Research, Institute of Economic Affairs (IEA).

    He told 3news in a report that a currency board-type monetary system can give the cedi lasting stability but warned that installing the currency board must be done progressively.

    “I agree with Prof. Hanke that only a currency board-type monetary system can give the cedi lasting stability. We should, however, move progressively towards it. The full modalities can be worked out.”

    Ghana’s inflation rate according to the Ghana Statistical Service has moved from 33.9 percent in August 2022 to 37.2 percent in September 2022.

    This is a 2.0 percent month-on-month increase from the 33.9 percent rate recorded in August 2022.

    However, the rate is also 37.2% higher than that of September 2021.

    Year-on-Year inflation varied upwardly by 2.2 percentage points between August (31.7%) and September (33.9%) 2022.

    Food inflation was 37.8% while non-food inflation was 36.8%.

    Inflation for locally produced items was 35.8% while inflation for imported items was 40.7%.

    Western Region recorded the highest food inflation (47.0%) and Eastern Region, the highest non-food inflation (42.0%). Eastern Region recorded the overall highest inflation (41.0%) followed closely by Western Region (40.2%) and Greater Accra Region (39.3%).

    Transport (68.7%) recorded the highest rate of inflation in the Eastern Region, for food inflation in the Western Region, Fish and Other Seafood had the highest rate of inflation at 64.0%.

  • ‘Spend some time with scientific literature’ – Prof. Hanke tells government statistician

    According to Johns Hopkins University professor of applied economics Steve Hanke, the Ghana Statistical Service is incorrect in saying that his calculation of Ghana’s inflation has a “serious weakness.”

    He claims that government statistician Professor Samuel Kobina Annim has to spend some time reading scholarly material.

    Samuel Kobina Annim, a statistician at the Ghana Statistical Service, asserts that my measure of inflation for Ghana has a “serious shortcoming.”
    Wrong. Prof. Annim ought to read some of the academic literature.

    “Ghana Statistical Service statistician Samuel Kobina Annim casts doubt on my measure of Ghana’s inflation rate. Today, using the tried-and-true purchasing power parity method, I measure inflation in Ghana at 98%/yr. Annim should take notes,” Prof. Steve Hanke tweeted on Saturday, October 15.

    Prof Samuel Kobina Annim cautioned Ghanaians against comparing the Statistical Services inflationary figures with that of popular US Professor Steve Hanke.

    He told the media at the October briefing on the nation’s inflation that the CPI method adopted by the Statistical Service is consistent with international practice and superior to Prof Hanke’s Purchasing Price Parity Module (PPPM), adding that Prof Hanke’s PPPM is only based on the exchange rate.

    “Steve Hanke’s approach is not based on the consumer price index, Steve Hanke’s approach is based on the purchasing power parity. Underlying the purchasing power parity is the assumption that price differences between [the] two countries are only the exchange rate.

    “The key difference here is that the CPI approach necessarily requires that you collect data on three variables: prices, quantities and the expenditure weight of these items, and this is at sharp variance with Steve Hanke’s purchasing power parity.

    “The premise of the computation both from a data point of view and a scope of data point of view are not the same, so we need not make an attempt to compare that,” Prof Annim explained.

    Ghana’s inflation rate according to the Ghana Statistical Service has moved from 33.9 per cent in August 2022 to 37.2 per cent in September 2022.

    This is a 2.0 per cent month-on-month increase from the 33.9 per cent rate recorded in August 2022.

    However, the rate is also 37.2% higher than that of September 2021.

    Year-on-Year inflation varied upwardly by 2.2 percentage points between August (31.7%) and September (33.9%) 2022.

    Food inflation was 37.8% while non-food inflation was 36.8%.

    Inflation for locally produced items was 35.8% while inflation for imported items was 40.7%.

    Western Region recorded the highest food inflation (47.0%) and Eastern Region, the highest non-food inflation (42.0%). Eastern Region recorded the overall highest inflation (41.0%) followed closely by Western Region (40.2%) and Greater Accra Region (39.3%).

    Transport (68.7%) recorded the highest rate of inflation in the Eastern Region, for food inflation in the Western Region, Fish and Other Seafood had the highest rate of inflation at 64.0%.

  • NDC should formalize partnership with Prof. Steve Hanke – Ahiagbah suggests

    Richard Ahiagbah, the national communications officer of the ruling New Patriotic Party (NPP), has requested that Prof. Steve Hanke, an American economist and professor, be “employed” by the rival National Democratic Congress (NDC).

    According to Ahiagbah, Hanke, who has become a frequent opponent of the government’s economic policies, was acting in a way that benefited the NDC, which is why he made the call.

    He tweeted, “Perhaps it’s time for the NDC to announce and formalize their collaboration with Steve Hanke because it’s evident.

    Days before, the Communications Director had also suggested that the NDC should replace outgoing General Secretary, Johnson Asiedu Nketiah with Prof. Hanke.

    “The NDC’s Steve Hanke is a perfect replacement for General Mosquito,” his tweet of September 30, 2022 read.

    Among Steve Hanke’s recent diagnosis of the economy is that it was tanking – an expression which means the economy is down and there are fears of a recession.

    He has in on numerous occasions blamed the Akufo-Addo-led administration for putting the economy in a dire situation.

    He has separately taken swipes at the Vice President, the governor of the Bank of Ghana, the Minister of Finance and more recently, Gabby Asare Otchere-Darko, a leading member of the NPP.

  • Cedi appreciation: ‘Ofori-Atta must be dreaming’ – Prof. Hanke

    Finance Minister Ken Ofori-Atta, according to Johns Hopkins University professor of applied economics Steve Hanke, has lost touch with reality on the performance of the Cedi.

    On September 29, he said in a tweet that Ofori-Atta was “dreaming” to believe that the Bank of Ghana’s efforts to ensure the Cedi regains its value were “paying off.”

    The Bank of Ghana’s attempts to control cedi depreciation, according to Ken Ofori-Atta, Ghana’s finance minister, are “paying off.”
    Ofori-Atta must be dreaming, spoiler alert.
    “The cedi has lost over 40% of its value against the USD since January 2020,” Prof. Hanke tweeted.

    The economist who runs a project called ‘Troubled Currencies’ has consistently written off the local currency as the ‘central bank junk currency’ insisting that the only way to curb it depreciation was the installation of a currency board.

    The Cedi has in recent times been experiencing a free fall against major trading currencies such as the US dollar.

    At a point, some forex bureaus sold a dollar at GH¢10. The Bank of Ghana through its frequent hiking of the monetary policy rate has been trying to curb the situation.

    The Finance Minister at a briefing on September 28 outlined other measures such as a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme which the central bank was implementing to stabilize the fall of the Cedi.

    “As part of measures to shore up our reserves, improve exchange rate stability and address some of the funding needs, the Ministry successfully worked on a US$750 million Afreximbank loan facility which was received in August 2022,” he explained.

    “The traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help us build our FX reserves and provide a strong buffer for the cedi in the last quarter of the year,” Ken Ofori-Atta added.

    As at July this year, for instance, the cedi lost its value by more than 20 percent to the US dollar.

    In addition, recent economic downgrades by international rating agencies such as Fitch and Standards & Poors’ has also impacted the investor community at large, while Ghana awaits an International Monetary Fund, IMF, support programme which is expected to be accessible in 2023.

  • ‘Ghana’s economy has gone down the tubes under Akufo-Addo’s reign’ – Prof. Hanke

    Steve Hanke, a professor of applied economics at Johns Hopkins University in the United States, has once more charged that the Akufo-Addo government is mismanaging the Ghanaian economy.

    This time, Prof. Hanke has specifically targeted President Nana Addo Dankwa Akufo-Addo, whom he sees as the primary cause of Ghana’s current economic situation.

    In a tweet on September 27, the US-based economist said that President Akufo-economic Addo’s policies had caused Ghana’s economy to “go through the tubes.”

    He also calculated Ghana’s inflation rate at 83 percent/year, which is twice as high as the official 33.9 percent for August of this year reported by the Ghana Statistical Service.

    By his estimations, Prof. Hanke ranked Ghana in 7th place among 22 other countries reeling from the impact of inflationary pressures.

    “Ghana is in 7th place in this week’s inflation table. On September 22, I measured Ghana’s #inflation at a stunning 83%/yr–over 2x the official inflation rate of 34%/yr. During Pres. Akufo-Addo’s reign, #Ghana’s economy has gone down the tubes,” Prof. Hanke wrote.

    The Professor of Applied Economics, who has taken a keen interest in Ghana’s economic issues, has on numerous occasions said the economy was tanking – an expression which means the economy is down and there are fears of a recession.

    Ghana is currently holding official negotiations with the International Monetary Fund for an economic support programme. The country is targeting around US$3 billion from the Bretton Woods institutions once an agreement can be reached.

    High cost of living, depreciation of the cedi, revenue generations constraints, fallout from the Russia-Ukraine war among others have been attributed to some of Ghana’s economic challenges.

    Consumer inflation for August 2022 hit 33.9 percent from 31.7 percent in July, making it the highest rate recorded in 21 years.

  • ‘Akufo-Addo is the source of Ghana’s economic woes but plays the blame game’ – Prof. Hanke

    Steve Hanke, a professor of applied economics at Johns Hopkins University, has once more chastised President Akufo-Addo for shunning responsibility for how the Ghanaian economy has been managed.

    The government has frequently said that the COVID-19 epidemic, the ongoing Russia-Ukraine conflict, and the banking sector clean-up are the main causes of the current economic headwinds.

    But Professor Hanke believes President Akufo-Addo has often played the blame game without taking full responsibility over the challenges in the economy which is now seeking an International Monetary Fund (IMF), support programme.

    In a tweet sighted by GhanaWeb, Prof. Hanke in his regular commentary referenced Akufo-Addo’s remarks at the United General Assembly where he indicated that the Russia-Ukraine war has aggravated an already difficult situation for Ghana.

    “Every bullet, every bomb, every shell that hits a target in Ukraine, hits our pockets and our economies in Africa,” Akufo-Addo earlier said.

    In his reaction, Professor Hanke on September 25 wrote, “When it comes to the source of #Ghana’s economic problems, Pres. Akufo-Addo plays the BLAME GAME. You know, it wasn’t me, it was the guy behind the tree. Today, I measure GHA’s inflation at 83%/year. That’s more than DOUBLE the phony official rate.”

    Professor Hanke who has taken a keen interest in the economic issues of Ghana in a separate tweet said Ghana’s economy was tanking – an expression which means the economy is down and there are fears of a recession.

    He has in on numerous occasions blamed the Akufo-Addo-led administration for putting the economy in a dire situation.

    Meanwhile, the Ghana Statistical Service recently announced that consumer inflation for August 2022 hit 33.9 percent from 31.7% in July, making it the highest rate recorded in 21 years.

  • Increased inflation is a result of the Bawumia-led EMT – Ato Forson backs Prof

    The Economic Management Team of the administration, according to Cassiel Ato Forson, Member of Parliament for the Central Region’s Ajumako-Enyan-Esiam Constituency.

    By advocating such viewpoint, he concurred with Steve Hanke, a professor of applied economics at Johns Hopkins University, who recently blamed Vice President Dr. Mahamudu Bawumia for the nation’s issues.

    By legislation, Bawumia is in charge of the EMT.

    According to Ato Forson, Ranking Member on the Finance Committee of Parliament, “the Economic management team, headed by Bawumia and assisted by the finance minister and the entire government,” is to blame for Ghana’s inflation.

    Ato Forson has been one of the most vocal and critical voices of the New Patriotic Party’s handling of the economy amid an economic downturn that has forced government to seek a programme with the International Monetary Fund, IMF.

    The Ghana Statistical Service, GSS, recently announced that consumer inflation for August 2022 hit 33.9% from 31.7% in July.

    This is the highest rate that has been recorded in 21 years. According to the GSS, food and transportation were the main drivers of inflation.

    Ato Forson described the 21-year high rate of inflation as “terrible”. He wrote on his Twitter page on September 14, 2022: “inflation likely to hit 40% in November 2022 if the 30% increment in fares starts on September 21, 2022.”

    According to him, even though the Vice President rode on the back of coming to solve the problems of the country, he is rather doing the opposite by creating problems.

    Professor Hanke’s comment comes on the back of the depreciation of the Ghana Cedi.

    “#Ghana’s VP Bawumia says he’s “into politics to help people solve problems.” SPOILER ALERT: Bawumia is the one CREATING the problems. Today, I measure GHA’s inflation at a stunning 81%/yr, nearly 2.5 TIMES the official rate,” he tweeted on September 20.

    Professor Hanke who has taken a keen interest on economic issues of Ghana in a separate tweet said Ghana’s economy was tanking – an expression which means the economy is down and there are fears of a recession.

    He has in the past blamed the Akufo-Addo-led administration for putting the economy in a dire situation.

    “Ghana is in 8th place in this week’s inflation table. On Sep 8, I measured Ghana’s #inflation at a stunning 81%/yr–over 2x the official inflation rate of 34%/yr. #Ghana’s economy is TANKING. To rein in inflation, GHA must install a currency board,” he tweeted on September 19.

    “Today, I measure #Ghana’s inflation at 81%/yr. As a result, Ghanaians don’t know the price of anything anymore. When Ghanaians see their grocery bills soar, they can thank Pres. Akufo-Addo,” Prof Hanke added.

  • Ghana’s issues are being caused by Bawumia – Hanke

    Vice President Dr. Mahamudu Bawumia is the root of the nation’s troubles, according to Johns Hopkins University professor of Applied Economics Steve Hanke.

    He asserts that despite the Vice President’s stated intention to address the nation’s problems, he is actually doing the reverse by causing more of them.

    Professor Hanke’s statement is in response to the Ghana Cedi’s decline in value versus major trading currencies, particularly the US dollar.

    The vice president of Ghana, Bawumia, claims he entered politics to aid in problem-solving.
    SPOILER: Bawumia is the one who is causing the issues.
    On September 20, he tweeted, “Today, I measure GHA’s inflation at a shocking 81%/yr, nearly 2.5 TIMES the official rate.

    Professor Hanke who has taken a keen interest in the economic issues of Ghana in a separate tweet said Ghana’s economy was tanking – an expression which means the economy is down and there are fears of a recession.

    He has in the past blamed the Akufo-Addo-led administration for putting the economy in a dire situation.

    “Ghana is in 8th place in this week’s inflation table. On Sep 8, I measured Ghana’s #inflation at a stunning 81%/yr–over 2x the official inflation rate of 34%/yr. #Ghana’s economy is TANKING. To rein in inflation, GHA must install a currency board,” he tweeted on September 19.

    “Today, I measure #Ghana’s inflation at 81%/yr. As a result, Ghanaians don’t know the price of anything anymore. When Ghanaians see their grocery bills soar, they can thank Pres. Akufo-Addo,” Prof Hanke further teased.

    Ghana’s economy has been hard hit according to the government by the ravages of the COVID-19 pandemic, the ongoing Russia-Ukraine war and banking sector clean-up.

    The rippling effect has been an increase in the cost of living, record high inflation rates and downgrades of the economy by rating agencies such as S&P and Fitch – a situation which has dealt a heavy blow to government’s ability to access the international capital market.

    The Cedi has also been on a free fall compelling the Bank of Ghana to resort to hiking its monetary policy rate to deal with the situation.

    The worsening economic situation compelled the government in July to initiate contact with International Monetary Fund for an economic support programme.

    Ghana is said to be targeting an amount of US$3 billion over three years from the International Monetary Fund once an agreement on a programme is reached. The new amount requested as a loan was double the government’s initial target of $1.5 billion.

    Government hopes to complete negotiations by end of the year in order to receive the funds in the first quarter of next year.

  • Ghana must mothball its central bank, put it in a museum and install a currency board – Steve Hanke

    A professor of applied economics at Johns Hopkins University in Baltimore, Maryland, Steve H. Hanke has called for a complete overhaul of the country’s Central Bank, the Bank of Ghana, as part of measures to avert the country’s economic woes.

    Taking to Twitter, he stated that “Ghana must mothball its central bank, put it in museum, and install a currency board, now.”

    He further intimated that “things keeps getting worse under the leadership of President Akufo-Addo.” Citing the rising cost of fuel and other commodities to back his assertion, he stressed that these are factors fueling violent protests in the country.

    “Sky-high food & fuel costs have triggered violent protests,” he said.
    He also predicted that even though public sector workers has averted their strike, the country is likely to experience more strikes.
    “Ghana has averted a planned strike over pay of public workers by increasing the cost of living allowance by 15%. SPOILER ALERT: The 15% increase was way too small to keep up with inflation, which I measure at 50%/yr. So, protests will soon reappear,” he said.