NPP: 'Economy worst'; IMF must save suffering Ghanaians

The opposition New Patriotic Party (NPP) has lamented the worsening situation of Ghana’s economy under the watch of President John Dramani Mahama.

Speaking to the media Tuesday, the ranking member of Finance, Dr Anthony Osei Akoto said, “the economic fundamentals have gotten worse since February 2014.”

“Had government listened to good advice, we would not have found ourselves in this predicament,” the minority legislator said. “The unfortunate thing is that all of us Ghanaians will have to pay a higher price for what government failed to do, for reasons best known to them.”

He added: “Why did it take the President five good months to see the writing on the wall?”

The Mahama-led administration has begun negotiations with the International Monetary Fund for a bailout to salvage the ailing economy as the local currency - the Ghana Cedi - depreciates against the Dollar and other major foreign currencies.

Touching on the bailout, the NPP said: “We would request government to negotiate an IMF programme that would not inflict further hardships on Ghanaians, who have already suffered enough from the incompetence and mismanagement of this NDC government over the past six long years.

“Whatever agreement is reached with IMF should protect jobs, reduce the high cost of living, reduce the cost of doing business, and support the transformation of Ghana’s economy.”

On the economy, Dr Akoto noted: “The GDP growth rate which was inherited by Kufuor was 3.7%. In 2001 the GDP grew at 4.2%, in 2002 it grew at 4.5% rising to 5.2% in 2003 and to 5.6% in 2004. It rose to 5.9% in 2005; 6.4% in 2006; 6.3% in 2007 and to 7.3% in 2008 which later became 8.4% after the rebasing of the economy.

“This steady growth happened without the benefit of crude oil exports. This is how a really sound economic growth aggregate looks like.”

He continued: “Less than six years into the NDC administration, the Cedi has depreciated by 245.5% and still counting. Interest rates now hover around 30%; our gross international reserves in months of imports have dwindled to 202 months of imports, and the net reserves is for just 7 days… this is the first time in a very long time that we have had a double-digit current account deficit and budget deficit two years in a row; public debt stock is now double-digit current account deficit and budget deficit two years in a row; public debt stock is now Ghc58billion up from Ghc51.6billion in December 2013… this means that today every Ghanaian owes Ghc2,150.”

On manufacturing, he said: “High production cost has rendered Ghanaian manufacturing industry uncompetitive. In the face of withering industry and an atrophic agriculture, employment cannot be generated and hence, unemployment figures are soaring. That is the state of our economy.”