The Communications Officer of the National Democratic Congress (NDC), Sammy Gyamfi, has challenged the government’s claim of achieving a GH¢1 trillion Gross Domestic Product by 2024, asserting that Ghana had already reached this milestone in 1999 and 2006.
The Finance Minister, on the other hand, presented this as an unprecedented accomplishment in the country’s history.
In a statement in reaction to the 2024 budget, he said: “The projected nominal GDP of GHS1 trillion therefore has no significant positive bearing on the ever-worsening livelihoods of Ghanaians. It means nothing for the ordinary Ghanaian whose economy is his pocket,” Sammy Gyamfi said in the statement.
Below is Sammy Gyamfi’s full statement:
The lowest point in the 2024 budget speech, was when the Finance Minister sought to celebrate Ghana’s nominal GDP reaching the trillion cedi mark.
The truth of the matter is that, this increase in nominal GDP has come about as a result of the extremely high rate of inflation we have witnessed in recent time. It is not indicative of actual growth in production whatsoever.
In a high inflation environment as we’ve seen in the last couple of years, it is not surprising that nominal values will record big jumps. Hence, nominal GDP may indicate an increase whereas it is all fluke.
What is most important, is real GDP which takes into account inflation. Any economist worth his salt should know this. This is trite.
The projected nominal GDP of GHS1 trillion therefore has no significant positive bearing on the ever-worsening livelihoods of Ghanaians. In fact, it means nothing for the ordinary Ghanaian whose economy is his pocket.
If nominal GDP is anything to go by, then Ken Ofori Atta must be reminded, that what he is touting as a great achievement is no news at all. Ghana’s nominal GDP stood at over 19 trillion cedis in 1999 before redenomination. By 2006, Ghana’s nominal GDP had exceeded 100 trillion cedis. Again, the facts show, that the NDC government increased Ghana’s nominal GDP from 17.6 billion cedis in 2008 to 167 billion cedis in 2016 (pre-rebasing).
The failed Akufo-Addo/Bawumia government must stop majoring in minors and focus on important economic factors that significantly impact the livelihoods of Ghanaians. Suffering Ghanaians deserve better!
SAMMY GYAMFI ESQ.
National Communications Officer, NDC