The Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has criticized the New Patriotic Party (NPP) administration for its handling of Ghana’s economy, stating that the government has failed to make significant improvements over its eight-year tenure.
Speaking on The Big Issue on Channel One TV on Saturday, February 8, Dr. Kwakye discussed various economic indicators with host Selorm Adonoo, arguing that the NPP administration had not steered the economy toward stability and sustainable growth.
“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.
One of his major concerns was Ghana’s inflation rate, which, according to the Ghana Statistical Service, stood at 23.5% in January 2024, a sharp rise from the 15.2% recorded in 2016.
He attributed inflationary pressures to the depreciation of the cedi, increased government borrowing, and supply chain disruptions.
Dr. Kwakye also pointed to the rising public debt relative to GDP and the worsening exchange rate, both of which have affected businesses and the cost of living.
“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.
His comments add to growing concerns over the country’s economic outlook as Ghana faces persistent inflation, debt challenges, and currency depreciation
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