The economy has not turned any corner – Economist challenges Akufo-Addo

An economist, Professor John Gatsi, has shot down President Nana Addo Dankwa Akufo-Addo's assertion that Ghana's economy has turned the corner and is poised for growth.

The Dean of the School of Business at the University of Cape Coast (UCC) dismissed Akufo-Addo's claim, stating ‘Definitely, not so.’

In the president's Christmas message, he expressed confidence in the nation's ability to overcome challenges from the COVID-19 pandemic and the Russia-Ukraine war.

In response to the President's assurances, Prof Gatsi, as reported by myjoyonline.com, argued that all the economic indicators worthy of consideration contradict Akufo-Addo's statement that the economy has turned the corner.

To validate the President's claim of a positive shift, Prof Gatsi stressed the need for multiple indicators to align and illustrate a tangible change in the economy.

However, he pointed out that even in sectors showing some growth, particularly the industrial sector, the growth is uneven and not robust.

Highlighting the challenges faced by manufacturing and industry, including multiple taxation, a challenging operating environment, and limited access to high-cost credit, Prof Gatsi emphasised the absence of clear signs of improvement in these areas.

“Manufacturing and industry, in general, have been struggling with multiple taxation, difficult environment to operate, very difficult to access credit which is at huge costs translating to higher prices. We have not settled our debts, we have not been able to demonstrate any effort to turn the situation around… there are no signs that these things are improving,” he stressed.

He also emphasised that the reduction in inflation alone should not be considered sufficient evidence to make such a claim.

Prof. Gatsi cautioned against relying solely on the reduction in inflation as sufficient evidence of economic recovery.

He urged the government to collaborate on recovery efforts and emphasised the need for effective actions by the President and his team to achieve the desired economic results.

NW/MA

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