The NPP Minority has accused President Mahama of propaganda during his SONA, focusing on the economy’s state. Former Minister Dr. Amin Adam highlighted that Mahama did not acknowledge the NPP government’s achievements or the economic recovery, focusing instead on inflation figures. Key economic indicators suggest a stronger economy compared to Mahama’s past, including notable GDP growth and improved trade balances.
The New Patriotic Party (NPP) Minority caucus has accused President John Dramani Mahama of engaging in propaganda regarding Ghana’s economy during his first State of the Nation Address (SONA). Speaking at a March 3, 2025 press conference, former Finance Minister Dr. Mohammed Amin Adam indicated that Mahama failed to acknowledge the 2022 challenges and the NPP government’s economic recovery efforts with IMF support. Instead of fostering political consensus, Mahama opted for propagandist rhetoric, which could backfire on him.
According to Dr. Amin Adam, President Mahama criticized the NPP for ending with a headline inflation of 23.8%, exceeding the IMF target of 18%. He argued that when considering recent crises like COVID-19 and the Russia-Ukraine war, an inflation rate of 23% represents a notable achievement, especially as it declined from a high of 54% in 2022. While not yet aligning with medium-term targets, the disinflation trend is gaining momentum.
The former minister asserted that the IMF allows minor deviations from inflation targets in uncertain economic climates, such deviations are common. Drawing from Mahama’s previous term when he deviated from the 10.1% target in 2016 to 15.4%, Dr. Adam contended that the current situation is not as dire as Mahama implies.
Dr. Amin stressed the importance of holistic measures of economic performance beyond inflation, such as real GDP growth and trade balance. The real GDP growth was projected at over 6% for 2024, exceeding the IMF’s target of 4%. This marked a considerable improvement compared to Mahama’s tenure when GDP growth was below target in years like 2016.
The trade balance has recorded a surplus since 2017, with estimates predicting a 5.9% of GDP surplus for 2024. This contrasts sharply with Mahama’s record of a 2% deficit in 2016. Furthermore, the current account enjoyed a rare surplus of 4.2% of GDP for the same year, indicating a strengthening external payments position that Mahama’s government couldn’t achieve amidst crises.
Lastly, Dr. Amin highlighted the resilience of Ghana’s economy illustrated by the Bank of Ghana achieving a historic gross international reserve of $8.9 billion, covering four months of imports. This stands in contrast to the $6.2 billion reserves (3.5 months of import coverage) when the NDC exited office. The real state of Ghana’s economy shows robust growth, impressive external sector performance, and strong resilience against shocks, contrary to Mahama’s portrayal.
In summary, the NPP Minority caucus contends that President Mahama’s assessment of the Ghanaian economy during his recent SONA was misleading and propagandistic. The assessment disregards significant positive developments such as GDP growth, trade balance improvement, and robust financial reserves, which collectively indicate a resilient economy. Overall, the actual state of Ghana’s economy is more favorable than Mahama acknowledged, underlining the effectiveness of NPP policies and the challenges previously faced under Mahama’s administration.
Original Source: www.gbcghanaonline.com
