The recent affirmation of the Government of Ghana's issuer and senior unsecured rating at B3 and change in the country's economic outlook to stable from negative by international rating agency, Moody's, is, indeed, an upgrade worth celebrating by the managers of the economy, Economist Dr John Gatsi has said.
"The fact is that you were having a negative outlook, now it is positive, it's an improvement; that's all Ghanaians want and that is OK by me," the lecturer at the University of Cape Coast told Prince Minkah on the Executive Breakfast Show on Monday, 10 October in response to an assertion by the vice-presidential nominee of the main opposition New Patriotic Party (NPP), Dr Mahamudu Bawumia during the launch of the party's manifesto at the International Trade Fair Centre on Sunday, 9 October in Accra that Moody's has not upgraded Ghana's credit rating contrary to assertions by the Mahama administration to that effect.
According to Dr Gatsi, "[With] that kind of improvement … somebody can say it's an upgrade, but the most important thing is that some challenges still remain within the Ghanaian economy that all people who are in charge of managing the economy should pledge themselves the more to work harder to ensure that greater improvement is achieved, but as it is now, Moody's has actually indicated an improvement in the outlook of the Ghanaian economy and those who are managing the economy have the right to actually assign credit to themselves that they are doing well, but the fact remains that more needs to be done."
Pressed by Prince Minkah about whether it was really an upgrade, Dr Gatsi said: "Of course, if you are negative and you are moved to positive, have you not been upgraded in the scheme of things?"
According to Dr Bawumia's argument, Ghana's credit rating got downgraded to (B-) under President Mahama despite having oil revenue at his disposal, from (B) positive (without oil under the NPP). He said nothing had changed per the recent rating except the revised outlook, adding that: "In fact, international rating agencies like Moody's, Fitch, and Standard & Poor’s now have basically the same credit rating for Ghana."
"The recent revision of Ghana's outlook from (B-) negative to (B-) stable, that is the equivalent of B3," he explained, with the revision of the outlook from negative to stable, "has resulted in a misinterpretation by this NDC government and President Mahama that Ghana's credit rating has been upgraded".
He continued: "This is in fact not the case. Moody's did not upgrade Ghana. Ghana's rating under Moody's is still B-. It is only the outlook that has been revised and that is not equivalent to a change in rating or a rating upgrade."
"Sometimes, one wonders whether they don't read or they don't understand. So, let me give Mr President a free piece of advice: Mr President, please desist from embarrassing yourself by stating that Moody's has upgraded Ghana. Your economic management team should explain that difference to you.
"The Mo Ibrahim 2016 report on governance shows that on virtually all key development indicators such as safety, rule of law, human rights, economic opportunities, infrastructure, business environment, human development, health and public management, Ghana is worse off today than it was 10 years ago."
Mr Mahama recently said the review of Ghana's economic outlook from negative to stable is proof that "we're doing something right".
Source: classfmonline.com
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Whatever, JM toaso
back in UCC you use propaganda to deny us your student economic theory that would have been beneficiary to us. Please when will you come out to give alternative solutions to this canker Ghanaians are facing. whether that is an upgrade or not the best economy is in our pocket.
Gatsi is a fake doctor,His PhD is not authentic and can.t understand the topic under discussion.
NDC Kaaki Dr Bawumia speaks and the NDC goes into panic mode again. He is thorn in their flesh.
Massa; this shows the real lack of understanding of our own basic economic environmental trends and the control that the these rating agencies have over economies ; the failure by these so lecturers at our universities to understand what inputs goes into classifying what data goes into these economic ratings to me leads to some of the poor comments by these NDC reptiles ; this Mr Gatsi is just attempting to present a politico/economic subjective view of the current rating classification by Moody's ; his views are not based on economic facts ; the question is on what economic data does this full Mr Gatsi pontificate that Ghana has done well because save the details of the grounds for such grading B plus and B minus by any of the rating agencies it will be difficult for this so called legon economist to start making these politico/economic assertions that Ghana has done well besides any variations in ratings tells any finance minister or any business that their business or the economy is heading the wrong way besides these rating agencies will never tell any economy what to do ; the judgement of any position on ratings are left to lending organisations who make an objective decision whether to lend or not to lend ; the case of Ghana and the current ratings by Moody's is neither here nor there ; it does not make any difference to these lenders because they are aware of the basic underlining cracks in Ghana s economy ; they know that Ghana is a highly geared country and are very weak in applying macro-economic variables to balance the budget ; they know Ghana will never default because Ghana knows the consequence of defaulting on a loan and will always pay ; they know Ghana's appetite for loans is high therefore they can dictate the price of loans way above the prevailing interest rates in the market ; they know that we are desperate to borrow cash for next years repayment and will pay anything interest rates even if our ratings is D minus on the market ; they know that we play this propaganda tune that our bonds have being over subscribed but then they know we are fulls because we are incapable of managing our economy and will accept any loan at any price .
Does it MEAN that the Ghana ECONOMY is doing BETTER?Does it MEAN that the corruption and the inefficiency in the system,is no more?People shd as a matter of CONCERN stop this ***barred word*** academic argument.The fact is that the economy of Ghana is damaged by mahama and ndc.Do not use your knowledge to SUPPORT what is EVIL, b'cos Ghanaians are simply SUFFERING and in pains, and RESPONSIBLE people must make INTELLIGENT statements to get them out this HARDSHIP due to corruption and incompetency of mahama and ndc.
I will advice NDC for free. The reason Bawumia continues to soar in popularity is down to 2 things. one, he has predicted many things which have come to pass. The second and most important is reality. If I tell you I am hungry and you insist I am full, massa, you can never win. This economic debate with Dr.Bawumia is unproductive for the NDC. Bawumia will continue to win because most Ghanaians agree with Bawumia that the economy is bad. High school fees, collapse of the NHIS, high electricity bills, unpaid salaries, high food prices and so many things confirm the economy is very bad.So my advice to NDC is to avoid talking about the economy. Dr.Bawumia will win everytime.
Technically and factually, Dr Gatsi is wrong and Dr Bawumia is correct. Ghana crediting rating has not been upgraded but seen some progress. Upgrading suggests a cost of borrowing is reduced but recent aborted flotations in the bonds market by the government supports the fact that it has not been upgraded.
B- and B+ are distinct classes,no matter what doom wishers and doomsayers are saying,the fact is that there has been un improvement and most Ghanaians are aware of that and one of the fact is that we have very stable power and very stable currency at the moment and these are fact so NPP supporters should not hurl insult at the Doctor because he is saying the fact as it is but they do not want to see.
Massa, if you are Negative -B2 and your are still negative -B2 but your outlook is describe ash Stable what is the Upgrading here. NDC Economist Banzaaa