Audio By Carbonatix
The Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwabena Kwakye says the country's economy "has not turned the corner", neither is it on its way to growth.
This follows assertion by President Akufo-Addo that through sustained hard work and determination, Ghana has overcome the challenges presented by both the Covid-19 pandemic and the Russia-Ukraine war and was heading towards economic recovery.
While delivering his Christmas message on December 25, President Akufo-Addo stressed that inflation was also being reined in.
According to him, "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.”
But taking to social media, the economist disagreed with the President.
Read also: Ghana’s economy has not turned any corner – Economist sharply disagrees with Akufo-Addo
He argued that while the government is using the fall in inflation as a sign of recovery, the mood this Christmas season tells of a different economic reality.
“This is an Xmas to forget. Dry, dull and boring. Millions of Ghanaians can't afford even one decent meal as a chicken costs 200gh. Yet we are told inflation is low and the economy has turned the corner. Really? May be it's turned the corner for a few but not the majority,” he wrote in an X post.
Meanwhile, the stance by the economist backs earlier assertions made by another economist, Prof John Gatsi.
According to the Dean of the School of Business of the University of Cape Coast (UCC), Ghana’s economy has not turned any corner.
Prof Gatsi told Joy FM’s Newsnight that all the economic indicators worthy of consideration contradict the President's claim.
This is an Xmas to forget. Dry, dull and boring. Millions of Ghanaians can't afford even one decent meal as a chicken costs 200gh. Yet we are told inflation is low and the economy has turned the corner. Really? May be it's turned the corner for a few but not the majority.
— J. K. Kwakye (@JohnKwabenaKwa1) December 25, 2023
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 are 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, adding that there are no clear signs of improvement in these areas.
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