Renowned economist and University of Ghana lecturer, Prof. Patrick Asuming, has sharply criticized the government’s claim of a robust economic recovery.
He argues that the current economic state is more accurately described as stagnation rather than growth.
Prof. Asuming’s remarks stand in stark contrast to Finance Minister Dr. Mohammed Amin Adam’s assertion of a stronger-than-expected economic rebound during the 2024 Mid-Year Budget Review.
In an interview on the Big Issue on Channel One TV, Prof. Asuming highlighted the disparity between the government’s optimistic forecasts and the economic difficulties experienced by Ghanaians.
He pointed to ongoing issues such as exchange rate volatility, intermittent power outages, and high unemployment rates as indicators of economic fragility.
He noted that while 2023 GDP growth surpassed initial expectations, it still fell short of 2022 levels, a year considered economically challenging. Prof. Asuming argued that focusing solely on GDP growth, without considering its distribution and impact on citizens’ livelihoods, provides an incomplete view of the economy’s health.
The economist concluded that the government’s claim of a strong economic recovery is overstated and does not reflect the real experiences of Ghanaians.
“We don’t measure the progress of the economy by the GDP growth without paying attention to where the growth rate is coming from. And the extent to which Ghanaians are benefitting. I think if you go on the streets and ask many Ghanaians, what they will tell you is completely at variance with what the finance minister said that the economy is recovering strongly… The statement that the economy is recovering strongly is a lot of overstatement.
“Simply quoting that the exchange rate is lower than it used to be doesn’t really tell the full picture. The stabilisation we saw is kind of stalling.”
