Sammy Gyamfi, the National Communications Officer of the National Democratic Congress, cited Finance Minister Ken Ofori-Atta’s projections that Ghana’s economy is expected to surpass GH¢1 trillion in 2024 as the lowest point of the 2024 budget presentation.
He was replying to the minister’s budget statement read on Wednesday, November 15, 2023.
According to the Minister, the economy is predicted to grow from GH219.5 billion in 2016 to a historic milestone of GH1 trillion in 2024.
“Mr. Speaker, the 2024 Budget is even more significant because we will cross the GH¢1 trillion Gross Domestic Product (GDP) mark for the first time in our economic history. Let me repeat,
Mr. Speaker, Ghana’s economy under President Akufo-Addo’s final year in office is projected to be valued at over GH¢1 trillion in 2024 from GH¢219.5 billion in 2016″, he said.
However, his projection has been struck down.
In a statement, Mr. Gyamfi stated that the predicted growth is not reflective of actual growth but is the product of excessively high inflation, which is badly harming Ghanaians.
“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
By: Rainbowradioonline.com/Ghana
