Dr. John Kwakye Criticizes NPP’s Handling of Ghana’s Economy
The Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has strongly criticized the New Patriotic Party (NPP) administration for its management of Ghana’s economy. Speaking on The Big Issue on Channel One TV on Saturday, February 8, Dr. Kwakye argued that the government has failed to achieve significant economic improvements over its eight-year tenure.
Economic Growth: Marginal Progress at Best
Dr. Kwakye highlighted that Ghana’s economic growth has been underwhelming under the NPP administration. He pointed out that the International Monetary Fund (IMF) projected a growth rate of just 4% for 2024, compared to 3.6% in 2016.
“Where they took the economy from, it was not in a good place even though the previous administration told us that we had turned the corner. IMF projected growth for 2024 was just 4 percent, and it was 3.6 percent in 2016. That is just marginal growth,” he stated.
Rising Inflation: A Growing Concern
One of Dr. Kwakye’s major concerns is Ghana’s rising inflation rate. According to the Ghana Statistical Service, inflation stood at 23.5% in January 2024, a significant increase from the 15.2% recorded in 2016.
He attributed this inflationary pressure to several factors, including the Cedi’s depreciation, increased government borrowing, and global supply chain disruptions.
“Inflation for January is said to be 23.5 percent, and it was 15.2 percent in 2016. Public debt to GDP is now 72 percent as of November 2024, up from 58 percent in 2016. The exchange rate is now hovering around GH¢15, compared to GH¢4.2 in 2016. Over the eight years, the economy has not improved,” he remarked.
Public Debt and Exchange Rate Woes
Dr. Kwakye also expressed concern over Ghana’s rising public debt, which now stands at 72% of GDP as of November 2024, up from 58% in 2016. He noted that the worsening exchange rate, currently around GH¢15 to the dollar, has negatively impacted businesses and the cost of living for ordinary Ghanaians.
A Call for Accountability and Reform
Dr. Kwakye’s critique underscores the need for greater accountability and effective economic reforms to address Ghana’s persistent challenges. His analysis highlights the importance of sustainable policies to stabilize the economy and improve citizens’ livelihoods.
For more insights on Ghana’s economic policies, visit the World Bank’s Ghana Economic Overview or explore the IMF’s latest reports on Ghana.