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It is not in doubt that Ghana’s economy is facing with a wider range of challenges that has necessitated the move to seek a bailout from the International Monetary Fund.
The main causal factors of the economic crisis have been identified as the deadly coronavirus pandemic and the invasion of Ukraine by Vladimir Putin’s Russia.
These factors have affected the country so much that it has had to embark on a comprehensive debt restructuring programme that has generated discussions on our airwaves.
Government has been at the receiving end of opposition politicians and some media commentators who cannot understand why Ghana seems to be an island where the twin catastrophes of COVID-19 and the conflict have affected.
Oftentimes, they cite Côte d’Ivoire as a neighbour that has not experienced the economic difficulties Ghana is faced with even though the same COVID-19 and the ongoing war in Europe have affected them.
The IMF has reported that Côte d’Ivoire is being given a bailout of $2.6 billion to shore up its economy as the pandemic and the war have had a toll on the economy.
It stands to reason that the claim by these political actors and their collaborators in the media have been misleading the public with this barefaced falsehood.
The US banking sector is also in crisis due to these two events. Banks in the Almighty United States have started feeling the pinch of the global crisis.
On March 10, the biggest failure of a US bank since the global financial crisis was playing out in real time as a major lender to the tech industry succumbed to a classic bank run.
Silicon Valley Bank’s customers were frantically pulling their money from the California-based lender before US regulators intervened to take control. But the collapse panicked markets, piling pain on weaker financial institutions already struggling with the unintended consequences of soaring interest rates and self-inflicted wounds.
A week on, a second US regional bank — Signature Bank — has been shut down, a third — First Republic Bank (FRC) — has been propped up, and the first major threat since 2008 to a bank of global financial significance — Credit Suisse — has been averted after it was taken over by UBS.
From all indications, the global financial crisis is much worse than initially thought. This means that the whole world is in crisis and not only Ghana.
It is, therefore, important for people to be as honest as possible when discussing the economy and not create the impression that Ghana has been mismanaged, hence, this crisis. This level of dishonesty must end!
MyABCLive