Ghana's economy today

The history of Ghana since 1992 has experienced seven major elections with the incumbent, New Patriotic Party (NPP) and the major opposition party, the National Democratic Congress (NDC) handing over power to each other after every second term of governance. Undoubtedly, Ghana’s economic growth over the years and current economy has, is, and will be attributed to these two parties, whether good or bad.

The New Patriotic Party’s John Agyekum Kufuor (Former President of the Republic, the first president from the party) has been praised for his good governance and economic management by Ghanaians from all walks of life. Mismanagement of the economy, however, has mostly been attributed to the NDC.

Quiet recently, there have been debates and ranting among many Ghanaian nationals and non-nationals concerning the economy by way of comparing these two political giants’ economic management over the years. This necessitates the need to delve deep and address this topical issue with facts, bearing in mind the inimical global economic impact of the COVID-19 pandemic on economic growth.
Pursuant to the Bank of Ghana, the average depreciation of 7.3% over the last four years is the lowest for any first-term government in the history of Ghana since 1992.

2020 saw the lowest depreciation rate in the last 28 years. The cumulative exchange rate depreciation of 2.6% in November 2021 is lower as compared to a 9.7% cumulative exchange depreciation recorded in 2016.
Inflation rate in Ghana today is 12.2%, which is lower as compared to a 15.4% inflation rate in 2016. Bank lending rates in Ghana today is averagely 21% and was 32% in 2016.

This indicates that Ghana is experiencing a much lower bank lending rates now. The difference between the exports and imports of the country, thus, the trade balance, has recorded a surplus for four years (2017- 2020) in over two decades, which is also the first of such occurrence. The Gross International Reserves as it stands now are $10.8 billion which is 4.9 months of import cover as compared to $6.9 billion in 2016, which was 3.5 months import cover.

On the issue of job creation as it directly relates to the economy, the NPP’s current administration has a record to their credit for creating over 750,000 jobs as compared to the NDC’s immediate past administration where public service recruitment came to a halt due to the International Monetary Fund (IMF) loan conditionality that the NDC government agreed to.

The major determinants of a country’s economy have been compared. The ball is now in the court of the good people and citizens of Ghana to have a clear look at it and know how best to debate when the issue of the country’s economy comes up for mention.