The running mate for the New Patriotic Party, Dr Mahamudu Bawumia has said Moody's recent review of the economic outlook of Ghana should not be misconstrued as an upgrade.
Rather, he said the revision of the country’s outlook from B-negative to B-stable was only a review of the country’s economic outlook and not an upgrade.
He therefore advised President John Mahama to stop “embarrassing” himself in his attempt to explain recent reports of the country’s economic performance by international credit ratings agencies.
According to him, President Mahama’s continuous touting of the economic reports by agencies such as the International Monetary Fund (IMF), Moody’s and Fitch could be because his economic management team have failed him.
“…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,” he advised.
Dr Bawumia was speaking at the NPP’s manifesto launch at the Accra International Trade Fair Centre on Sunday.
According to him, “the recent revision of Ghana’s Outlook from B/Negative to B- Stable, which is the equivalent of the B-3, has resulted in a misinterpretation by the NDC government and President Mahama that Ghana’s credit ratings has been upgraded. This is in fact not the case. Moody’s did not upgrade Ghana’s rating. Ghana’s rating under Moody’s is still B/Negative. It is only the outlook that has been revised, and that is not equivalent to a ratings upgrade.”
Outlining some highlights of the NPP’s manifesto, Dr Bawumia noted that the current economic challenges were due to mismanagement and corruption. He said it was for this reason that the country had turned to the IMF for a bailout.
According to him, the NDC government have more resources at their disposal as compared to the NPP under President Kufuor, yet government has not been able to use them efficiently.
“Ghana’s sovereign credit rating has been downgraded from B+ positive. Without oil, Ghana was being rated at B+ Positive under the NPP. We’ve now come down with oil under the NDC and John Mahama to B – (negative) with a stable outlook in 2016 with oil. In fact, International Credit Ratings Agencies like Moody’s, Fitch, Standard and Poor’s, now have basically the same credit rating for Ghana,” he said.
“The Mo Ibrahim 2016 report on governance shows that on virtually all key indicators such as safety and the rule of law, human rights, economic opportunities, infrastructure, human development, business environment, health and public management, all these indicators, Ghana is worse off today than it was ten years ago. The IMF in its recent review of the Ghanaian economy has warned that Ghana is on the cask of a financial and economic crisis,” he added.
Dr Bawumia noted that “President Mahama and the NDC were in total denial” of the economic challenges facing the country.
“Notwithstanding this abysmal record, President John Mahama is actually asking Ghanaians where the economic crisis is. He is clearly out of touch. Mr. President the economic crisis is out there if you care to look out of the Flagstaff House”, he said.
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