The IERPP refutes President Mahama’s claim of an economic crisis in Ghana, asserting that the nation is in a recovery phase with GDP growth at 3.2%. Positive indicators include declining inflation, stabilized currency, and reduced public debt. Former Finance Minister Dr. Amin Adam supports this view, highlighting the importance of strategic reforms and social programs despite existing challenges like youth unemployment.
In 2024, the Institute of Economic Research and Public Policy (IERPP) asserted that Ghana’s economy is stabilizing, countering President John Dramani Mahama’s claims of a crisis. IERPP stated that the country is in a recovery phase, highlighting a Gross Domestic Product (GDP) growth of 3.2%, bolstered by increased cocoa production and favorable global prices.
Inflation rates have decreased to 22.8% in Q2 2024, while the cedi has stabilized between GH₵12-13 per US dollar. Importantly, public debt has been trimmed to between 75-80% of GDP as the IMF program remains on track, reflecting effective fiscal and monetary reforms undertaken by the prior administration.
Economic resilience has improved with social protection initiatives, such as the LEAP program, benefiting 2.5 million citizens, and supported by the Free Senior High School initiative. While challenges persist, such as youth unemployment which remains at 25% and a fiscal deficit reduced to 5.0-5.5% of GDP, the economic recovery suggests a shift from crisis management to stabilization.
Despite past economic difficulties, Dr. Mohammed Amin Adam, Former Finance Minister, remarked that economic growth is rebounding, in stark contrast to President Mahama’s assertions of a dire economic state. Dr. Adam pointed out that the previous government left a substantial gross international reserve of $8.9 billion, which is currently supporting the cedi.
President Mahama, addressing the nation, acknowledged existing hardships, stating that urgent measures are necessary to rectify the economic downturn. He pointed to rising inflation, burdensome debt, and a struggling private sector as critical issues that require strategic policy intervention to reinvigorate the economy.
In conclusion, while President Mahama has characterized Ghana’s economy as being in crisis, the IERPP and former government officials contend that significant progress denotes a recovery phase. With GDP growth, declining inflation, and fiscal discipline being emphasized, the focus should be on sustaining these gains through diversification and continued reforms.
Original Source: 3news.com
