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Saturday, December 9, 2023

Increase in nominal GDP means nothing in a hyperinflation economy – Sammy Gyamfi to Ofori-Atta –

The National Communications Officer of the National Democratic Congress (NDC), Sammy Gyamfi, has criticised the Finance Minister’s announcement that Ghana’s economy will surpass GH¢1 trillion in 2024.

In a Facebook post on Thursday, November 16, Mr. Gyamfi acknowledged that while the projection is achievable, it is driven by the high rate of inflation experienced in the country.

He urged the minister and his team not to boast about this achievement, emphasizing that the nominal GDP increase is a result of the extremely high inflation rate and does not indicate real production growth.

Mr Gyamfi further argued that in an environment of high inflation, nominal values may show significant increase, but it does not reflect genuine economic growth.

He concluded by stating that the projection would have no meaningful positive impact on the worsening livelihoods of Ghanaians.

“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 times. 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.”

Already, Mr Gyamfi has expressed his disappointment with the 2024 budget, stating that the budget lacks hope for Ghanaians and does not effectively address the prevailing hardships in the country.

He highlighted that since the Akufo-Addo administration took office in 2017, none of its budgets has adequately met the demands of the citizenry.

“The 2024 budget failed to address the economic bankruptcy and excruciating hardships Ghanaians are reeling under, owing to reckless mismanagement by the Bawumia-led Economic Management Team.”


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