The NPP Minority caucus accused President Mahama of propaganda about Ghana’s economy during his SONA, asserting that he overlooked significant improvements. Dr. Amin Adam emphasized that inflation has dropped significantly since 2022 and various economic indicators demonstrate growth and resilience, countering Mahama’s characterization of the economy. He urged consideration of comprehensive metrics to accurately assess economic performance, asserting a positive outlook contrary to Mahama’s claims.
The New Patriotic Party (NPP) Minority caucus in Parliament has accused President John Dramani Mahama of engaging in propaganda regarding Ghana’s economy during his recent State of the Nation Address (SONA). During a press conference, former Minister of Finance Dr. Mohammed Amin Adam conveyed that a more truthful appraisal of the current economic situation would acknowledge the challenges faced in 2022 and celebrate the economic improvements attributed to the decisive policies of the NPP government, aided by the IMF.
Dr. Amin Adam criticized President Mahama for highlighting an inflation rate of 23.8%, claiming it indicated poor monetary policy. He emphasized that considering the inflation rate peaked at 54% due to external crises and has since reduced to 23%, this represents a notable positive shift. He argued that while inflation targets may not have been fully realized, the trend demonstrates progress.
He contended that minor deviations from IMF targets are typical given global economic uncertainties and recalled that Mahama’s previous administration faced even worse deviations in 2016. Dr. Amin Adam stated, “President Mahama has shot himself in the foot by his rush to paint this situation as bad.” Additionally, he pointed out that Mahama neglected to discuss other vital economic metrics such as GDP growth and trade balance, which illustrate a more comprehensive and positive economic picture.
The Ghanian economy has shown an average GDP growth of 6.4% for the first three quarters of 2024, exceeding the IMF target. This growth significantly outperformed previous projections and contrasted sharply with Mahama’s tenure when the economy underperformed. According to Dr. Amin Adam, the trade balance also indicated substantial improvement with a surplus forecasted for 2024. He further mentioned the current account balance reflecting a surplus of 4.2% of GDP, a feat rarely achieved in recent times, unlike the deficits experienced under Mahama’s administration.
The Bank of Ghana has successfully increased gross international reserves to an unprecedented $8.9 billion, which amounts to four months of import cover, surpassing the reserve levels left by the previous NDC government. Dr. Amin Adam concluded by asserting that while President Mahama painted a bleak picture of the economy, the realities show a strong recovery, impressive external sector performance, and enhanced resilience to economic shocks. This encapsulates the true state of Ghana’s economy, contrary to the narrative presented by the President.
In summary, the NPP Minority caucus challenges the portrayal of Ghana’s economy by President Mahama in his recent SONA. They assert that the economic indicators reflect significant progress and resilience, contrasting Mahama’s claims. Dr. Amin Adam’s analysis highlights the importance of considering a wider range of economic metrics beyond inflation, illustrating that the current administration is steering the economy towards recovery and growth. Therefore, the narrative of a failing economy is not substantiated by the factual economic performance.
Original Source: www.gbcghanaonline.com
