Member of Parliament for Ningo Prampram, Samuel Nartey George, has challenged President Addo Dankwa Akufo-Addo to provide clarity on his assertion that Ghana’s macroeconomic situation is improving.
The lawmaker insists Gross Domestic Product (GDP) growth rate and debt-to-GDP ratio have worsened since the change in administration, indicating a decline in economic performance.
Citing figures from budget statements spanning 2017 to 2024, the MP emphasised a significant downturn in industrial growth, highlighting a contrasting GDP growth rates between the National Democratic Congress’ tenure and that of the ruling New Patriotic Party (NPP).
He tells Nana Yaa Brefo and JB on Onua FM’s Yen Nsempa morning show that the NDC administration saw a positive industrial growth rate of 4.3% in 2016, compared to the New Patriotic Party’s -1.2% by 2023.
“Industries in 2016 grew by 4.3 % and in 2023, it grew negatively by -1.2% and you can see them in Former Minister for Finance, Ken Ofori-Atta’s 2017 and 2024 budget statements.
“I want to do a few Economic indicators because the President spoke about Macroeconomic indicators in the State of the Nation Address and said they are looking in the right direction, which Macro-Economic Indicators is Akufo-Addo saying is working well?” he quizzed Wednesday, February 27, 2024.
According to Mr George, the debt-to-GDP ratio surged from 56% in 2016 to 103% by 2022, while inflation rates have also soared, contradicting the President’s claims of economic progress.
“You want Ghanaians to hail you? Our GDP growth rate in 2016 was 3.6% and at the end of the first 3 quarters of 2023 it’s 2.8, none of these indicators speak to his assertions,” Sam George added.
Addressing the discrepancies, George questioned which specific macroeconomic indicators President Akufo-Addo referenced during his State of the Nation Address (SONA).
“So you ask yourself, which of the Macro-economic indicators is Nana Addo Dankwa Akufo-Addo saying is working well?” he asked.
He criticised the government’s handling of inflation, particularly in the agriculture sector, despite purported achievements in initiatives like the Planting for Food and Jobs program.
“They claimed they have fulfilled their Planting for food and jobs agenda yet food inflation is 27.1%”
He underscored that these economic setbacks cannot solely be attributed to the impact of COVID-19, challenging the narrative of improvement put forth by the administration.
Background
President Addo Dankwa Akufo-Addo on Tuesday, February 27, 2024, stated that the major macroeconomic indicators are pointing in the right direction. He said the macro-economy was much stronger at the end of 2023 than the previous year as indicators were showing positive signs.
He said this at the State of the Nation Address in Parliament in accordance with Article 67 of the 1992 Constitution.
“In 2022 Inflation, which peaked at 54.1 per cent in December 2022 has reduced to 23.5 per cent in January 2024. Real GDP Growth for the first three quarters of 2023 averaged 2.8 per cent, higher than the targeted Growth rate of 15 per cent for 2023. The cedi has been largely stable since February 2023, with a cumulative depreciation of nine per cent (9 per cent) between February and December 2023,” he said
He said “Gross International Reserves reflected a significant buildup of at five-point-nine billion dollars (US$5.9 billion), enough to cover 2.7 months of imports of goods and services. The current account turned positive at 1.4 per cent of GDP at the end of September 2023, from negative two-point-one per cent (-2.1 per cent) at the end of December 2022.”
By Lois Dogbe|Onua FM
