In a post 2022 budget analyses, the Danquah Institute said economic growth declined to 0.4% in the 2020, in their view, the lowest since 1983.
The Government, according to them, however, immediately put together a number of programmes and projects to help the economy recover immediately from the heavy fall. By the end of 2020, debt-to-GDP ratio was at 76.1%. Fiscal deficit had increased to 11.7% without the financial sector and energy sector related expenditures.
“Nana Addo Dankwa Akufo-Addo began his first term of office as President of the Republic of Ghana on 7th January, 2017 and at the time the economy was growing at 3.4% (in 2016). Two years before his assumption of office, Ghana had entered into an IMF extended credit facility arrangement.
“Among other things, Ghana was tasked to clean its ailing financial sector while putting proactive measures in place to restore the deteriorated fiscal position of the economy. Nana Akufo-Addo’s Government was immediately called to action and it responded promptly by registering a positive primary balance for the first time in 15 years at the end of the 2017 fiscal year!
“A positive primary balance was recorded again, in 2018 and in 2019 to suggest the Government’s excellent performance in debt management. By dint of hard work, the Ghanaian economy was growing at 6.5% at the end of 2019 – which was quite impressive. Debt-to-GDP ratio which was 57.6% (2013 constant prices), however, increased to 62.8% at the end of 2019 fiscal year.
“Unfortunately, the unforeseen COVID-19 pandemic disrupted the otherwise prudent fiscal management exhibited by the government. Economic growth declined to 0.4% in the 2020 — the lowest since 1983! The Government, however, immediately put together a number of programmes and projects to help the economy recover immediately from the heavy fall.
“By the end of 2020, debt-to-GDP ratio was at 76.1%. Fiscal deficit had increased to 11.7% without the financial sector and energy sector related expenditures.
“Danquah Institute is happy to note that the recovery strategies implemented by the NPP government in the wake of the COVID-19 pandemic have yielded dividends.
“The economy grew at 3.1% and 3.9% respectively during the first two quarters of this year. On average therefore, the economy grew at 3.5% during the first half of the year – which is higher than the 2016 growth rate! Therefore, even though the adverse effects of the COVID-19 pandemic still remain, the Ghanaian economy is growing faster than it was when the current NPP Government took over power in January 2017.”
By Laud Nartey|3news.com|Ghana