Economic Crisis Will Worsen- Economist

Professor Kodwo Ewusi,

Professor Kodwo Ewusi, Dean of Graduate Studies at the Methodist University College, has predicted that the economic crisis will worsen this year if factors responsible for situation persist.

According to him, government must put pragmatic measures in place to address the numerous problems.

Prof. Ewusi, who made this known at the 48th J.B Danquah Memorial lectures at the British Council in Accra, said the euphoria at the start of oil production at the Jubilee Oilfields had dissipated.

“Ghana’s economy is now bedeviled with double digit inflation, double digit interest rate, double digit depreciation of the cedi, double digit unemployment, unsustainable physical policies and widening trade deficit. The state of the economy is not good,” he said.

Prof. Ewusi said, “After reaching a peak of 14.7 percent in 2011, growth in the economy of Ghana has slowed consistently to 8.8 percent in 2012, 6.7 percent in 2013, 4.2 percent in 2014 and I think that we would get only 3.5 percent in 2015 if the problems persist.

Speaking on the theme, ‘Human Capital and Economic Growth in Ghana,’ he noted that there has not been much improvement in the external sector, where merchandized trade, current account and the overall balance of payment registered negative balances.

“The deficit on merchandized trade in 2014 was $1.6 billion, current account deficit is $3.6 billion and overall balance of payment stood at a deficit of $85.2 million in 2014,” Prof. Ewusi stated.

This year’s JB Danquah Memorial lectures was attended by Nana Akufo-Addo, the presidential candidate of the New Patriotic Party (NPP), Prof. Agyeman Badu Akosa, a leading member of the Convention People’s Party (CPP) and Prof. Akilakpa Sawyer, President of the Ghana Academy of Arts and Sciences, among others.