The New Patriotic Party (NPP) has revised its ambitious target of achieving single-digit inflation by the end of 2025, admitting it is no longer realistic. This comes as a significant shift from the party’s 2024 manifesto promise, which projected a sharp reduction in inflation if Dr Mahamudu Bawumia is elected President.

Speaking on PM Express: Manifesto Tracker on Wednesday, the NPP’s Campaign Spokesperson on Finance, Dr Mark Assibey-Yeboah, explained the reasons behind the adjustment.

“When the manifesto says we’ll bring inflation down to single digit by 2025, it was based on projections at the time. For 2024, the Bank of Ghana’s projected end-year inflation was 15%. However, as of July, when the manifesto was being prepared, inflation remained high.

If the Bank of Ghana, which manages these projections, expected 15% by the end of 2024, it’s unrealistic to assume we could bring it down to a single digit within another 12 months. The rate is cumulative, and the high base effect from previous years cannot be ignored.”

This admission comes against the backdrop of Ghana’s current economic challenges, including inflation, which reached a record 55% earlier this year before dropping to 22.1%.

Former Finance Minister Seth Terkper, representing the opposition National Democratic Congress (NDC), criticized the NPP’s economic management and outlined his party’s more measured approach to tackling inflation.

“Let Ghanaians remember that it was the NPP’s mismanagement of the economy that caused inflation to hit 55%. This is the result of deficit financing and other structural issues,” he stated.

Read also: Throwback: What Bawumia said about single-digit inflation

The Former Finance Minister argued that the NDC’s inflation target is achievable within two to three years if John Mahama is elected president. “Our target is single-digit inflation, and we approach it realistically. We understand the structural challenges and won’t make promises that ignore the underlying problems,” he added.

On Ghana’s ballooning debt, Mr Terkper outlined the NDC’s strategy to strengthen the Sinking Fund, ensuring consistent resources are available to service the country’s debt. He also highlighted plans to introduce a debt ceiling of 65% of GDP under a future Mahama administration.

“We will not exceed this ceiling. The goal is to manage Ghana’s debt sustainably while addressing the root causes of economic instability,” Mr Terkper said.