General News of Friday, 4 August 2017
Economist and former lecturer at the Kumasi Technical University, Thomas Kusi Boafo, has noted that Ghana’s economy which was mismanaged and thrown out of gear during the previous National Democratic Congress (NDC) administration is now on the path of recovery.
“The economy is on the path of recovery,” Mr Kusi Boafo stated.
According to him, Ghana’s economy had witnessed positive signs barely eight months when the New Patriotic Party led by President Akufo-Addo took over the administration of the country.
He argued that about sixteen economic indicators which hitherto recorded higher percentage points are now lowered while those that recorded negative had also picked up since Akufo-Addo administration took over.
“Inflation rate at the end of 2016 was 15.4% but as at June 2017, it had reduced to 12.1%. Again Bank of Ghana Policy rate had also reduced to 21% as at June from 25.5%, Interest on Treasury Bills was 16.4% but it’s now 12.08% and growth rate which was 3.5% had also risen to 6.6%.
Our Balance of Trade deficit in 2016 also stood at $1.4billion, however Trade Surplus as at June this year stands at $1.42billion , Debt to GDP has declined from 73.1% to 67.5% ,Foreign Reserves also went up to $ 5.9billion from $4.9 billion, Budget deficit also declined to 2.7% from 4.4% and total market capitalization increased to ¢59.5billion from ¢52.7billion,” he said.
Speaking on Oman FM political analysis programme Boiling Point, Mr. Kusi Boafo, who is also the Chief Executive Officer of Public Sector Reforms, said “with the current state of affairs regarding the economy there is no doubt that the economy is on the path of recovery.
“Most of us projected 2019 as the period for real recovery but I think the time of our economic outlook can be shortened to even the end of 2018, where we will see crystallization of the progress,” Mr Kusi Boafo predicted.
He rated President Akufo-Addo very high for assembling competent economic management, saying this has never happened before since the 4th republic.
“The current economic management team is powerful. In fact in the history of the country, no government has ever assembled such a team. Each one of them qualifies to chair the economic management team.”
But as to whether the level of economic gains could result in job creation for the teeming unemployed youth, Mr. Kusi Boafo expressed uncertainty.
He held the view that only when the country record double digits economic growth consistently for over five years before we can clear arrears of unemployment.
“If we can clear arrears of unemployment situation then the economy should be growing by between 10% and 12 % for five years flat,” he concluded.