IEA Director Criticizes NPP’s Economic Management Over Eight-Year Tenure
Dr. John Kwakye, Director of Research at the Institute of Economic Affairs (IEA), has criticized the New Patriotic Party (NPP) administration for its economic management, stating that the government has failed to deliver significant improvements over its eight-year tenure.
Speaking on The Big Issue on Channel One TV on Saturday, February 8, 2025, Dr. Kwakye assessed key economic indicators arguing that the NPP had not achieved the stability and sustainable growth it promised.
“Where they took the economy from, it was not in a good place even though we were told by the previous administration that we had turned the corner. The IMF projected growth for 2024 at just 4 percent, compared to 3.6 percent in 2016—this is merely marginal growth,” he stated.
Inflation, Debt, and Exchange Rate ConcernsDr. Kwakye highlighted inflation as a major concern, noting that Ghana’s inflation rate, as reported by the Ghana Statistical Service, stood at 23.5% in January 2024—a significant increase from 15.2% in 2016. He attributed inflationary pressures to cedi depreciation, rising government debt, and supply chain disruptions.
“Inflation for January is said to be 23.5 percent, and it was 15.2 percent in 2016. Public debt to GDP is now 72 percent as of November 2024, compared to 58 percent in 2016. The exchange rate is now hovering around GH¢15 to the dollar, up from GH¢4.2 eight years ago,” he noted.
Dr. Kwakye argued that these economic challenges have negatively impacted businesses and the cost of living, further exacerbating economic instability.
Growing Concerns Over Ghana’s Economic OutlookHis remarks add to mounting concerns over Ghana’s economic trajectory, as the country continues to grapple with inflation, debt burdens, and currency depreciation. With less than a year to the next general election, economic performance is expected to be a key issue in political debates.
