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• Economy , News , Politics
• January 3, 2025
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• 3 minutes Read

Akufo-Addo Challenges Mahama: Achieve 55% Debt-to-GDP Ratio for Economic Stability

President Nana Addo Dankwa Akufo-Addo has issued a strong call to opposition leader and former President John Dramani Mahama, urging him to make reducing Ghana’s debt-to-GDP ratio to 55% a top priority if he assumes office after the 2024 elections. This comes amidst mounting public concerns over the nation’s rising debt levels and the pressing need for economic stability. Speaking at a recent public event, President Akufo-Addo underscored the importance of fiscal discipline as a cornerstone of sustainable economic growth. He pointed to the challenges his administration has faced in navigating the global economic downturn and managing domestic fiscal pressures. The president expressed confidence that achieving a lower debt-to-GDP ratio would enhance investor confidence and create a more resilient economy. “The sustainability of our economy depends on strong fiscal discipline,” he remarked. “We have made significant strides in addressing economic challenges, and I encourage any future administration, including one led by my predecessor, to prioritize reducing the debt-to-GDP ratio to a sustainable level of 55%.” Ghana’s debt-to-GDP ratio, which currently exceeds 70%, has become a subject of national debate. Economic analysts warn that the high ratio limits the country’s capacity to finance critical development projects and manage debt repayment obligations effectively. Critics of the Akufo-Addo administration, including members of the National Democratic Congress (NDC), have argued that the government’s borrowing habits and alleged fiscal mismanagement are largely to blame for the ballooning debt. In response, the government has defended its fiscal policies, citing the impact of external shocks such as the COVID-19 pandemic and global economic disruptions. Former President Mahama, who is campaigning for a return to the presidency, has frequently criticized the current government’s economic record. In recent campaign speeches, he has pledged to implement measures aimed at restoring fiscal balance and reducing the debt burden. Mahama has pointed to his administration’s efforts during his previous term, highlighting achievements in infrastructure development and economic reforms. “Ghanaians deserve leadership that understands prudent economic management and prioritizes their welfare,” he stated at a recent rally. The NDC has unveiled plans for a comprehensive economic recovery program, which includes restructuring public debt, addressing unemployment, and combating inflation. These proposals, Mahama argues, will set Ghana on a path to fiscal health and inclusive growth. However, achieving a 55% debt-to-GDP ratio is expected to require bold and sustained efforts, including tightening government spending, enhancing domestic revenue mobilization, and negotiating favorable terms for debt restructuring. As Ghana prepares for the 2024 elections, economic policy…