Sammi Awuku has dismissed claims that the economy was “criminally managed” under Nana Akufo-Addo, arguing that inflation alone does not define economic performance.
“The fact that the general level of prices has gone up does not mean the economy was criminally managed,” he stated in a Facebook post.
He noted that John Mahama inherited 9.4% inflation from Mills but left it at 15.4% in 2016, while Akufo-Addo reduced it to 7.6% in 2019 before global crises drove it up.
“This imported inflation significantly contributed to Ghana’s inflation rising to 54% by the end of 2022,” he explained.
Awuku credited the NPP’s policies for stabilizing inflation at 23% before Mahama’s return and highlighted a stronger trade balance and higher reserves under Akufo-Addo. “The ‘criminally managed’ economy still recorded over 6% growth, higher than Mahama’s 3.4% in 2016,” he argued.
See his full post;
“Was the economy criminally managed?”
This has been the main question from the media since yesterday.
1. My response has been an explanation that inflation is just one of the various macroeconomic indicators used to measure the performance of an economy. The fact that the general level of prices has gone up does not mean the economy was criminally managed.
2. In any case, Mahama inherited an economy with inflation at 9.4% from Mills. He pushed it up to 15.4% by December 2016.
3. Akufo-Addo worked hard to tame inflation, bringing it down to 7.6% in September 2019—the lowest in 28 years! (Source: BoG)
4. After the COVID-19 pandemic, inflation rose to 13.6% by January 2022. Soon after Russia’s invasion of Ukraine, the global price of crude oil surged from $72 to $121 per barrel. Freight charges increased by 300%. As a result, Germany experienced its highest inflation in 70 years, while the UK and US recorded their highest inflation in 40 years. This imported inflation significantly contributed to Ghana’s inflation rising to 54% by the end of 2022.
5. However, the NPP government responded with policy measures to address the problem. Inflation hovered around 23% at the time Akufo-Addo handed over the economy to Mahama.
6. The “criminally managed” economy still recorded over 6% growth, higher than Mahama’s 3.4% in 2016.
7. Nana Addo’s average fiscal deficit was lower compared to Mills/Mahama’s.
8. Nana Addo left an economy with a trade surplus, whereas John Mahama left an economy with a trade deficit in 2016.
9. Nana Addo left almost $9 billion in gross international reserves to protect the cedi, while Mahama left only $6.1 billion.
The post NPP stabilized the economy before Mahama took over – Sammi Awuku appeared first on MyNewsGh.
