Ghana’s economy has not turned any corner – Economist disputes Akufo-Addo’s claim

Economist Prof John Gatsi disagrees with President Akufo-Addo’s assertion that the country’s economy has turned the corner.

According to the Dean of the School of Business of the University of Cape Coast (UCC), Ghana’s economy has not turned any corner.

“Definitely, not so,” he said in response to President Akufo-Addo’s Christmas message claiming that the country is emerging from its economic challenges and moving into growth.

President Akufo-Addo had expressed optimism that the country will overcome the challenges presented by the COVID-19 pandemic and the Russia-Ukraine war with sustained hard work and determination.

“Fellow Ghanaians, I’m particularly glad that our nation has turned the corner. Following three difficult years ,we, and indeed the world ,have faced. Inflation is being reined in. We’re experiencing a relatively stable exchange rate and growth in our economy is rebounding. We continue to attract investments, domestic and foreign, reinforcing our position as the gateway to Africa. And we remain a beacon of democracy, peace and stability in Africa.”

He had also acknowledged that the nation was not out of the woods yet, but with hard work and determination, Ghana would make it.

Asked what he made of the president’s assurances to the populace, Prof Gatsi said that all the economic indicators worthy of consideration do not support the president’s claim that the economy had turned the corner.

He said that to demonstrate the positive shift in the economy, as claimed by the president, multiple indicators must align and illustrate this change.

However, even in sectors where there is seeming growth, the growth is undulating and not robust, especially so within the industrial sector.

He highlighted the struggles faced by manufacturing and industry, citing challenges such as multiple taxation, a difficult operating environment, and limited access to credit at high costs.

He added that there are no clear signs of improvement in these areas.

“Manufacturing and industry, in general, have been struggling with multiple taxations, a difficult environment to operate, and very difficult access to credit, which is at huge costs, translating to higher prices. We have not settled our debts. We have not been able to demonstrate any effort to turn the situation around… there are no signs that these things are improving,” he stressed.

He emphasised that the reduction in inflation alone should not be considered sufficient evidence to make such a claim.