Increase in nominal GDP means nothing in a hyperinflation economy – Sammy Gyamfi to Ofori-Atta
Sammy Gyamfi, the National Democratic Congress’s (NDC) national communications officer, has criticized the Finance Minister’s declaration that Ghana’s GDP will top GH¢1 trillion by 2024. On Thursday, November 16, Mr. Gyamfi stated in a Facebook post that although the estimate is realistic, it is influenced by the high rate of inflation the nation is now…
Sammy Gyamfi, the National Democratic Congress’s (NDC) national communications officer, has criticized the Finance Minister’s declaration that Ghana’s GDP will top GH¢1 trillion by 2024.
On Thursday, November 16, Mr. Gyamfi stated in a Facebook post that although the estimate is realistic, it is influenced by the high rate of inflation the nation is now facing.
He reminded the minister and his staff not to brag about this accomplishment, pointing out that genuine production growth is not shown by the nominal GDP gain, which is the outcome of an abnormally high rate of inflation.
Mr. Gyamfi went on to say that while nominal values may rise significantly in a context of high inflation, this does not always indicate real economic development.
In closing, he said that the prediction will not significantly improve Ghanaians’ declining standard of living.
Already, Mr. Gyamfi has voiced his dissatisfaction with the 2024 budget, saying that it fails to provide optimism for Ghanaians and does not adequately address the current challenges facing the nation.
“The lowest point in the 2024 budget speech, was when the Finance Minister sought to celebrate Ghana’s nominal GDP reaching the trillion cedi mark.”
“The truth of the matter is that this increase in nominal GDP has come about as a result of the extremely high rate of inflation we have witnessed in recent times. It is not indicative of actual growth in production whatsoever.”
“In a high inflation environment, as we’ve seen in the last couple of years, it is not surprising that nominal values will record big jumps. Hence, nominal GDP may indicate an increase whereas it is all fluke.”
He emphasized that none of the budgets passed by the Akufo-Addo administration since it into office in 2017 had sufficiently addressed the needs of the populace.
“The 2024 budget failed to address the economic bankruptcy and excruciating hardships Ghanaians are reeling under, owing to reckless mismanagement by the Bawumia-led Economic Management Team.”
