The Dean of the University of Cape Coast (UCC) Business School, Professor John Gatsi, has expressed skepticism about the current state of Ghana’s economy despite President Akufo-Addo’s claim of a rebound.
The professor specifically points to the exchange rate of the cedi to the dollar, currently standing at GHC12.00 to $1.00, as evidence that economic growth is not as robust as suggested.
According to Prof Gatsi, the stability of the exchange rate at this high level does not serve as an indicator of improved economic conditions.
He challenged the notion that Ghanaians should perceive positive economic changes based on the exchange rate alone, especially given the significant increase from GHC6.00 to GHC12.00 within a year.
During an interview on TV3’s Ghana Tonight Show, Prof Gatsi countered President Akufo-Addo‘s assertion that the country’s economy is rebounding.
“You do not just say that because exchange rate has stabilised at the highest level from about GHC6.00 last year to about GHC12.00, so, if it’s stable around GHC12, you don’t use that to tell Ghanaians that things are better for them and things would be better in 2026,” the Finance lecturer told Martin Asiedu Dartey on TV3’s Ghana Tonight Show on December 25.
He argued that even the current inflation and policy rates fail to reflect genuine signs of economic recovery.
The Finance lecturer emphasized that addressing a troubled economy goes beyond statistical improvements.
He stressed that reducing inflation from 54% to 26% or increasing the policy rate from 14% to 30% does not inherently signify a resolution to the country’s challenges, especially when factors like hardship, unemployment, and poverty have doubled.
“When we say an economy has been messed up, and to correct that economy, it doesn’t take inflation reducing from 54% to 26% to indicate that things are better. When policy rate has increased from 14% to 30%. You don’t just look at headline inflation falling to 26% to think that you have solved the problem of the country when hardship, unemployment and poverty have doubled,” Prof Gatsi explained.
In response to the President’s Christmas message, where Akufo-Addo highlighted a relatively stable exchange rate and declining inflation as positive indicators, Prof Gatsi stated that such statements were aimed at providing reassurance to the citizens during the holiday season.
“Fellow Ghanaians, I am particulary glad that our nation has turned the corner following three difficult years, we and indeed, the world have faced. Inflation is being reigned in, we are experiencing a relatively stable exchange rate, and growth in our economy is rebounding.
“We continue to attract investments, domestic and foreign, reinforcing our position as the gateway to Africa and we remain a beacon of democracy, peace and stability in Africa. The country is not yet completey out of the woods, but there is a growing confidence that with hard work and determination, Ghana will make it and collectively, we will secure our future,” he said in his statement.
President Akufo-Addo continued that, “I remain committed to the mandate you freely gave me. I will use the last year of my stay in office, to do all in my power to continue to help create a free and prosperous nation of opportunities where every Ghanaian child, no matter the circumstances of his or her birth, has a fair chance to strive for a happy and dignified life and realise his or her aspirations.”
“You do not just say that because exchange rate has stabilised at the highest level from about GHC6.00 last year to about GHC12.00, so, if it’s stable around GHC12, you don’t use that to tell Ghanaians that things are better for them and things would be better in 2026,” the Finance lecturer told Martin Asiedu Dartey on TV3’s Ghana Tonight Show on December 25.
“He is giving a Christmas message, so he is only talking to just assure people. So what he is saying is not the reality,” Prof Gatsi stressed.