The National Democratic Congress’s (NDC) communications officer, Sammy Gyamfi, characterized the Finance Minister Ken Ofori-Atta’s estimates that Ghana’s economy will top GH¢1 trillion in 2024 as the budget presentation’s low point.
The Finance Minister said during a speech to Parliament on Wednesday, November 15, that the economy is predicted to grow from GH¢219.5 billion in 2016 to a historic GH¢1 trillion in 2024.
In response to the minister’s estimate, Sammy Gyamfi issued a statement in which he claimed that the predicted rise was really the product of very high inflation, which was having a detrimental effect on the average Ghanaian.
“The projected nominal GDP of GHS1 trillion therefore has no significant positive bearing on the ever-worsening livelihoods of Ghanaians. In fact, it means nothing for the ordinary Ghanaian whose economy is his pocket,” Sammy Gyamfi said in the statement.
Below is Sammy Gyamfi’s full statement.
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 time. 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.
What is most important, is real GDP which takes into account inflation. Any economist worth his salt should know this. This is trite.
The projected nominal GDP of GHS1 trillion therefore has no significant positive bearing on the ever-worsening livelihoods of Ghanaians. In fact, it means nothing for the ordinary Ghanaian whose economy is his pocket.
If nominal GDP is anything to go by, then Ken Ofori Atta must be reminded, that what he is touting as a great achievement is no news at all. Ghana’s nominal GDP stood at over 19 trillion cedis in 1999 before redenomination. By 2006, Ghana’s nominal GDP had exceeded 100 trillion cedis. Again, the facts show, that the NDC government increased Ghana’s nominal GDP from 17.6 billion cedis in 2008 to 167 billion cedis in 2016 (pre-rebasing).
The failed Akufo-Addo/Bawumia government must stop majoring in minors and focus on important economic factors that significantly impact the livelihoods of Ghanaians. Suffering Ghanaians deserve better!
SAMMY GYAMFI ESQ.
National Communications Officer, NDC