Renowned economist Professor John Gatsi has provided an in-depth analysis of Ghana’s current financial situation, emphasizing the country’s struggles with debt repayment and economic stability. His remarks come in response to President John Dramani Mahama’s recent State of the Nation Address (SONA) on February 27, 2025, where the president described inheriting an economy in crisis.
Speaking on The Big Issues on Channel One TV, Prof. Gatsi explained that economic crises are defined by a nation’s inability to meet key financial benchmarks over a prolonged period. According to him, Ghana’s recent history of debt repayment suspension and fiscal struggles are clear indicators of financial distress.
“Crisis should be conceptualized. It is not just an English word that is commonly available. You need to look at whether you are meeting the benchmark of financial indicators. If you are not meeting those benchmarks, and they prolong, and also it is difficult, then you are in a crisis,” he noted.
Prof. Gatsi highlighted Ghana’s temporary suspension of both domestic and external debt payments, which has only recently resumed, as a major red flag for the economy. He argued that such financial difficulties signal deeper economic challenges that require urgent policy interventions.
“This is because our finances are not meeting the benchmark. We have gone through a period where we have not paid both domestic and external [debts]. We have just resumed repayment. Those are signs of a crisis,” he explained.
Despite acknowledging the crisis, Prof. Gatsi also pointed out that Ghana’s economy continues to generate revenue through taxes and other sources, offering some level of resilience amid the challenges.
His analysis sheds light on the urgent need for economic reforms to restore stability, as Ghana navigates a complex financial landscape marked by debt burdens and fiscal uncertainty.
