2014 GDP growth figure in budget false - MP

The Member of Parliament (MP) for Obuasi West Constituency, Mr Kwaku Kwarteng says the 6.9% Gross Domestic Product (GDP) growth for 2014 is false.

“From the figures you have provided, GDP (in purchasers' value) only grew in real terms from GH¢32,514.02 million in 2013 to GH¢34,024.35 million in 2014.

“This represents 4.645% GDP growth, not the 6.9% growth reported,” he said.

Mr Kwarteng’s accusation was contained in a letter dated November 20, 2014 and addressed to the Finance and Economic Planning Minister, Seth Terkper.

“This is serious misreporting that undermines the credibility of the entire budget statement and economic policy of the government,” he said.

He appealed to the Minister to take immediate steps to correct this misrepresentation before businesses and other interested entities (both local and international) use this wrong figure for their purposes.

He explained that almost everything in the management of the economy depends on GDP figures.

According to him, the real GDP growth figure reflects the pace at which Ghana is generating economic activity and creating jobs.

Mr Kwarteng explained that the amount of money printed by the Bank of Ghana depends on the country’s GDP figures.

“Our public debt, revenue, arrears and many other important variables are stated as ratios of our GDP.

“Therefore a wrong determination of GDP-related figures could have very serious consequences for the general management of the economy and our ability to improve the lives of our people.

“It is for this reason that I write to draw your attention to the false real GDP growth figure reported in the 2015 Budget Statement that you presented to Parliament,” he said.

The Obuasi West MP said “in paragraph 40 and other parts of the budget statement, you stated that the economy would expand in real terms by 6.900% at the close of 2014.”

The Finance Ministry has pledged to look into the concerns raised by the MP and communicate to the public at the appropriate time.