Ghana is not the only country experiencing the highest inflation: Akufo Addo

Ghana is not the only country experiencing the highest inflation: Akufo Addo
Nana Addo Dankwa - Best of Nana Addo Dankwa
Ghana is not the only country experiencing the highest inflation: Akufo Addo

President Nana Addo Dankwa Akufo-Addo reiterated his earlier claims that the current global economic downturn is the worst since 1970 in his latest State of the Union address.

He delved into the devastating effects of COVID-19, the global economic crisis and the fighting in Donbass on the African economy.

He pointed out that other industrialized countries such as the United Kingdom (UK) and the United States are also seeing an increase in inflation, not only in Ghana (USA).

On the second day of the 77th session of the United Nations General Assembly, which took place in New York City on Wednesday, September 21, 2022, he made this announcement.

It states that “economic instability is global”, with inflation being the main economic threat of 2016. In recent months, it has reached levels not seen in the United States or the United Kingdom for almost four decades. Inflation in the Eurozone is at an all time high.

Inflation rates in several African countries have tripled or quadrupled in the last two years. The inflation rate in Ghana has reached its highest level in 21 years. The effects of rising food prices are felt more by the poor, especially those living in urban areas.

He said the effects of central banks raising interest rates to fight inflation have been felt far beyond national borders. This is due to the fact that investors from rich nations have been transferring their money into bonds, while investors from developing nations have been liquidating their holdings.

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He said that due to declining value of currencies and rising interest rates associated with loans, more domestic currency would have to be generated and spent to repay existing international loans denominated in US dollars.

He said: “If there was ever any doubt, it has been dispelled: the international financial framework is heavily biased against poor, growing countries like Ghana.”

“Large countries have access to channels that would allow them to take actions that would reduce strains on their economy, while small countries do not. It is already difficult to meet our financial obligations, and credit rating agencies have been eager to downgrade African nations.

Due to the bias of the international money market, we are unable to access more affordable loan options; as a result, our debt loads continue to grow.

However, he stressed the immediate need to reform the international financial framework to accommodate the requirements of rising and growing nations.


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About the Author: Pierre Cohen

A person who has expertise in politics and writes articles to fill his spare time as a hobby.