Sam George questions Akufo-Addo’s claims on macroeconomic performance

Member of Parliament for Ningo-Prampram, Sam George, has challenged President Nana Addo Dankwa Akufo-Addo to provide clarity on his assertion that the macroeconomic situation is improving.

Speaking to Nana Yaa Brefo and Isaac Ekow Sam on Yen Nsempa, Mr George highlighted contrasting Gross Domestic Product growth rates between the National Democratic Congress’ tenure, which saw a positive industrial growth rate of 4.3% in 2016, compared to the New Patriotic Party’s -1.2% by 2023.

He pointed out that GDP growth rates and debt-to-GDP ratios have worsened since the change in administration, indicating a decline in economic performance.

Moreover, the MP emphasized a significant downturn in industrial growth, citing figures from budget statements spanning 2017 to 2024.

“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 statement.

“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.

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 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).

Which macro-economic indicator is Akufo-Addo saying is working well? – Sam George quizzes (youtube.com)

“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.

“In December, inflation was 54% as we speak today it is 23.5% 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 Nana Addo Dankwa Akufo-Addo on 27th February, 2024 stated that the major macroeconomic indicators are pointing in the right direction.

He said the macroeconomy 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.