The New Patriotic Party says the recent rating of Ghana’s economy from negative B to B has confirmed Dr. Mahamamudu Bawumia’s assertion that the country’s economic fundamentals are strong.
Critics questioned the competence of the vice president and the Akufo-Addo government in the management of the economy, which they claimed had slumped and affected the strength of the cedi against major trading currencies.
But Dr. Bawumia last week responded to his critics, insisting that the economy was strong to withstand what he termed the temporary issues with the cedi.
He asserted that the 7% depreciation of the cedi was the second lowest since 2012 hence cannot be evidence of weak economic fundamentals.
“The macroeconomic performance shows quite clearly that Ghana’s economic fundamentals are strong, and we can withstand the temporary challenges confronting the cedi,” Dr. Bawumia stated.
Deputy Minority leader James Avedzi and MP for Ketu North rejected Dr. Bawumia’s argument that the economy was doing well.
Though his argument was rejected by some critics, international credit ratings agency, Standards and Poor (S&P) Global on September 14 revised Ghana’s transfer and convertibility (T&C) assessment to ‘B’ from ‘B-’.
S&P Global indicated “the upgrade reflects our assessment that Ghana’s monetary policy effectiveness has improved, albeit from a low base, and will support the credibility of the inflation-targeting framework over the period”.
It justified its upgrade, saying it reflects its assessment that Ghana’s monetary policy effectiveness has improved, albeit from a low base, and will support the credibility of the inflation-targeting framework over the period.
Commenting on the issue, the NPP General Secretary in a statement Sunday said the new rating has vindicated the vice president’s position that the economy is built on strong fundamentals.
“The verdict by S&P Global ratings seems to have settled the debate on the economy in favour of the ruling New Patriotic Party Government,” the party said.
“It is a vindication of Vice President Mahamudu Bawumia, who has maintained that the economy is better managed today than two years ago,” the statement added.