The Institute of Economic Affairs (IEA) wants the government to accept responsibility for the poor macroeconomic outcomes during the 2020-2022 period.
According to IEA, the period was influenced by inappropriate policies, such as excessive spending, including on numerous flagship programmes, and excessive and expensive borrowing.
It pointed out that while exogenous shocks, in particular Covid-19 and the Russia-Ukraine war, also played a negative role, they impacted the economy against the backdrop of existing vulnerabilities, which compounded Ghana’s economic crisis.
In reaction to President Akufo-Addo’s State of Nation’s Address, it said almost all the macroeconomic indicators were worse in 2023 than what the government inherited in 2016.
“While his description of the macroeconomic situation in 2023 compared with 2022 was right, using 2022 as his base for comparison appears a bit self-serving. This is because 2022 saw record deterioration in many of the indicators. Indeed, the fact is that almost all the indicators were worse in 2023 than what the government inherited in 2016. It is the case that the indicators generally improved during 2017-19 and worsened during 2022-23”.
The IEA commended the government for the improved outcomes during 2017-20119, which occurred on the back of both improved policies, including enactment and observance of the Fiscal Responsibility Act (FRA).
It added that favourable exogenous conditions, such as stable oil prices, also played a positive contributory role.
“Government must, however, equally accept responsibility for the poor macroeconomic outcomes during 2020-22, which happened due to inappropriate policies, such as excessive spending, including on numerous flagship programmes, and excessive and expensive borrowing”, it continued.
Latest Stories
-
Paris 2024: Opening ceremony showcases grandiose celebration of French culture and diversity
3 hours -
How decline of Indian vultures led to 500,000 human deaths
3 hours -
Paris 2024: Ghana rocks ‘fabulous fugu’ at olympics opening ceremony
4 hours -
Trust Hospital faces financial strain with rising debt levels – Auditor-General’s report
4 hours -
Electrochem lease: Allocate portions of land to Songor people – Resident demand
5 hours -
82 widows receive financial aid from Chayil Foundation
5 hours -
The silent struggles: Female journalists grapple with Ghana’s high cost of living
5 hours -
BoG yet to make any payment to Service Ghana Auto Group
5 hours -
‘Crushed Young’: The Multimedia Group, JL Properties surprise accident victim’s family with fully-furnished apartment
5 hours -
Asante Kotoko needs structure that would outlive any administration – Opoku Nti
6 hours -
JoyNews exposé on Customs officials demanding bribes airs on July 29
6 hours -
JoyNews Impact Maker Awardee ships first consignment of honey from Kwahu Afram Plains
7 hours -
Joint committee under fire over report on salt mining lease granted Electrochem
8 hours -
Life Lounge with Edem Knight-Tay: Don’t be beaten the third time
8 hours -
Pro-NPP group launched to help ‘Break the 8’
8 hours