In his first state of the nation address, the President of Ghana, Nana Akufo-Addo said that he would reform the economy which is in a "bad way" and press ahead with a plan to create jobs, cut the budget deficit and improve sustainable agriculture.
According to Ceoafrica, Akufo-Addo told parliament yesterday that a three-year International Monetary Fund (IMF) programme to stabilise national finances had failed to meet its objectives, and he placed the blame squarely on the government he defeated in the country’s December polls.
The fiscal deficit for 2016 was 9 per cent of gross domestic product on a cash basis, rather than the target of 5.25 per cent, he said, and estimated growth of 3.6 per cent last year was the lowest in 23 years.
He said the government will significantly reduce the deficit in 2017 as part of its goal of ensuring that fiscal stability becomes an engine of growth, reasoning that it would lead to lower interest rates.
"The economy of our country is in a bad way", he said in a speech to parliament frequently interrupted by cheers from lawmakers from the ruling New Patriotic Party and jeering by the opposition National Democratic Congress.
Just a few years ago Ghana's economy was one of Africa's most dynamic, but it was hit hard starting in 2014 by a slump in global prices for its gold and oil exports.
A fiscal crisis saw inflation and the deficit rise sharply and the currency fall, forcing the previous government to enter the IMF programme.
The speech before parliament was Akufo-Addo's first major address since he was sworn in on the 7th of January and he outlined a series of priorities in line with his manifesto commitment to cut taxes and stimulate private sector growth.
