The NPP Minority caucus has accused President John Dramani Mahama of using propaganda regarding Ghana’s economy in his State of the Nation Address. Dr. Mohammed Amin Adam criticized the President for ignoring positive economic indicators and focusing solely on inflation. He emphasized the need for a more nuanced discussion about the economy, highlighting significant growth and stability under the current administration.
The New Patriotic Party (NPP) Minority caucus in Parliament has levied accusations against President John Dramani Mahama, asserting that he utilized the state of Ghana’s economy for propaganda during his maiden State of the Nation Address (SONA). Dr. Mohammed Amin Adam, speaking at a press conference, expressed disappointment that President Mahama did not present a true reflection of the nation’s economic condition, particularly failing to acknowledge the challenges faced in 2022 and the considerable recovery efforts of the NPP government.
Dr. Amin Adam highlighted that President Mahama attributed a high inflation rate of 23.8% to the NPP government, claiming it exceeded the IMF target of 18%. He argued that the decline from a peak inflation rate of 54% due to the COVID-19 pandemic and the Russia-Ukraine conflict to 23% within one year is a commendable achievement, rather than a sign of poor monetary policy.
The former Minister of Finance elaborated on the notion that minor deviations from inflation targets are commonplace, particularly in an unpredictable economic environment. He challenged President Mahama’s portrayal of the economic situation, arguing that the current disinflation trajectory demonstrates progress despite not meeting medium-term targets yet.
Moreover, Dr. Amin Adam emphasized that economic indicators such as real GDP growth and trade balance offer a broader context for understanding the economy than inflation alone. He noted that real GDP growth for the first three quarters of 2024 was an impressive 6.4%, well above the IMF’s target and contrasting sharply with the previous administration’s performance during Mahama’s tenure.
The trade balance has also shown improvement, maintaining a surplus since 2017 and concluding 2024 with a surplus of 5.9% of GDP. This stands in stark contrast to the deficit recorded under President Mahama. Additionally, the current account balance ended positively, offering a strong projection for the country’s external economic stability.
Dr. Amin Adam pointed out the importance of gross international reserves, noting that the Bank of Ghana has achieved a record $8.9 billion in reserves, significantly higher than the $6.2 billion left by the NDC government. This resilience underscores the current government’s preparedness for external economic shocks.
In summary, Dr. Amin Adam argues that the true state of Ghana’s economy reflects strong growth, commendable external sector performance, and enhanced resilience against crises, contrary to President Mahama’s portrayal of a distressed economy. It is imperative for all stakeholders to unite for the nation’s recovery and ensure a realistic understanding of economic indicators rather than succumbing to political narratives.
In conclusion, the NPP Minority caucus has denounced President Mahama’s economic portrayal in his SONA, asserting that he engaged in misleading propaganda. Dr. Amin Adam’s critique underscores the notable achievements in Ghana’s economic growth, inflation reductions, and external stability that contrast sharply with previous government performance. He advocates for a more informed discussion grounded in comprehensive economic indicators, highlighting the importance of unity in moving forward.
Original Source: www.gbcghanaonline.com
