The Vice President, Dr. Mahamudu Bawumia, who is also the flag bearer of the governing New Patriotic Party (NPP), has said that his “fundamentals are weak” statement is an “economic truism” which he still stands by.
Dr. Bawumia in 2016, whilst in opposition, criticised the then John Mahama administration for lacking the wherewithal to build stronger economic buffers, thereby weakening the economy.
According to him, the volatility of the economy was evidenced in the exchange rate, making him say that: “When the fundamentals are weak, the exchange rate will expose you.”
During an engagement with the media Sunday, August 25, 2024, as part of the activities following the launch of the NPP Manifesto, someone questioned his thoughts on the statement having made it at a time when the exchange rate was GHC4.00 to a dollar, and it quadrupling to GHC16.00 to one dollar at their time.
In his response, the Vice President said the statement was true then and remains same today, explaining that the current administration was on the path of building the most robust economy for the past 28 years until the Covid-19 pandemic set in.
He explained that the external shock weakened the economy by setting inflation to 54% in November 2022, something they have reduced to 18% due to the strengthened fundamentals this government has now built.
“The fundamentals are weak statement is an economic truism. When we came in the first term before Covid, you saw the fundamentals pretty much strengthening and the exchange rate depreciated to the lowest in 28yrs.
“All hell was breaking lose in 2022 when the biggest shock came. inflation in November was 54%, fiscal deposit was going up and the exchange went up. So once the fundamentals weakened, you have it shown in the exchange rate that’s why this year the depreciation is 18% because the fundamentals are strengthened,” he stated.
Dr. Bawumia’s encounter with the media is first of a series of others he will engage in leading up to the 2024 polls. This comes after being heavily criticised for running away from the media unlike his competitor, John Dramani Mahama, who had met with the press earlier.
In his quest to call for a debate between himself and the flag bearer of the NDC, John Dramani Mahama, many in the umbrella party have said no, advising the former President not to have any debate with Bawumia.
Ranking Member of Parliament’s Finance Committee, Isaac Adongo, has earlier said that if the Vice President wants to debate, he should go and account to the press.
‘Go and account to the press’ – Adongo to Bawumia on calls for presidential debate
