Dr. John Kwakye, Director of Research at the Institute of Economic Affairs (IEA), has criticized the New Patriotic Party (NPP) administration for its handling of Ghana’s economy.
Speaking on The Big Issue on Channel One TV, Dr. Kwakye argued that despite being in power for eight years, the NPP administration has failed to make significant improvements.
“Where they took the economy from, it was not in a good place even though we were told by the previous administration that we had turned the corner. IMF projected growth for 2024 was just 4 percent and it was 3.6 percent in 2016, and that is just marginal growth,” he stated.
The inflation rate stood at 23.5% in January 2024, a significant increase from the 15.2% recorded in 2016. Dr. Kwakye identified the depreciation of the cedi, increased government borrowing, and supply chain disruptions as contributing factors to the rising inflation rate.
“Inflation for January is said to be 23.5 percent, and it was 15.2 percent. Public debt to GDP is now 72 percent as of November 2024. It was 58 percent in 2016, and the exchange rate is now hovering around GH¢15. “They took it from GH¢4.2, so you will see that over the eight-year period, the economy has not improved,” he remarked.
Dr. Kwakye emphasized that these economic indicators demonstrate that the economy has not improved over the past eight years.
His comments add to the growing concerns over Ghana’s economic outlook, which is facing persistent inflation, debt challenges, and currency depreciation.
The government’s handling of the economy has raised concerns among experts and citizens alike. With Ghana’s economic challenges mounting, it remains to be seen how the government will address these issues.
Ultimately, Dr. Kwakye’s comments serve as a call to action for the government to reassess its economic policies and implement changes that promote sustainable growth and development.