President John Mahama

Last week, at a meeting with labor unions to discuss his government’s inadequate 10% upward adjustment of basic public salaries, President John Dramani Mahama caused a stir by launching scathing attacks on the economic management record of his predecessor. He accused the previous government of “criminally managing” Ghana’s economy.

Some analysts have described Mahama’s comments as unfounded and unpresidential. By calling Ghana’s economy a “crime scene” under the Akufo-Addo administration, he effectively branded the government and its officials—who managed the economy over the past eight years—as criminals.

Mahama’s remarks were clearly a deliberate ploy to discredit the economic management of the Akufo-Addo government while painting a grim economic picture to justify his meager and widely criticized 10% base pay increase.

While Mahama’s choice of words has been condemned, the setting in which he made these comments has also raised questions about his sincerity regarding Ghana’s economic management—both under his previous administration (2012-2016) and now.

For a man who has previously served as President and whose economic management record is well-documented, many have questioned his bold claims. Some have likened his accusations to “the pot calling the kettle black.”

The truth is that Mahama’s economic management during his first tenure was far worse than that of the Akufo-Addo government, which he now baselessly criticizes.

Considering Mahama’s unenviable economic management record, one wonders how he finds the audacity to condemn a government whose key economic indicators are demonstrably stronger.

Across nearly all key economic indicators, Mahama’s first administration posted poor numbers, exposing its inability to address Ghana’s economic challenges. This contributed to his humiliating record as the only sitting President in the Fourth Republic to lose an election.

Mahama’s persistent attempts to paint the Akufo-Addo government in a negative light, despite his own dismal record, leave many to draw three possible conclusions:

President Mahama, with all due respect, does not understand these key economic indicators and their comparative implications.

He believes Ghanaians have forgotten about his poor record eight years ago.

He is being misinformed or misled by his economic advisors.

Based on the available evidence, I strongly believe that Mahama is being misinformed by his economic aides. If he were fully aware of the poor economic indicators recorded under his leadership (2012-2016) and their devastating impact, he would not dare attack the comparatively better record of the Akufo-Addo administration.

11 Reasons Why President Mahama is Misinformed on Economic Data

1. Economic Growth

Mahama’s poor economic management between 2012 and 2016 is reflected in Ghana’s stunted economic growth under his administration.

Despite not facing any major global economic crisis, his government oversaw a steady decline in GDP growth, culminating in a disappointing 3.4% growth rate when he left office in 2016.

Even worse, in 2015, Ghana’s GDP growth plummeted to 2.1%—the lowest in 32 years—despite the absence of external economic shocks.

In contrast, after inheriting Mahama’s 3.4% growth rate, the Akufo-Addo government steadily improved economic growth, achieving 6.51% in 2019 before the COVID-19 pandemic severely impacted the global economy.

While the pandemic caused Ghana’s growth rate to drop to 0.51% in 2020, the government quickly rebounded with a 5.08% growth rate in 2021. However, the Russia-Ukraine war in 2022 further affected global economies, leading to a slight decline in growth to 3.82% in 2022 and 2.95% in 2023.

Despite these crises, the Akufo-Addo government left office with a far better growth rate of 7.2%, significantly higher than Mahama’s final 3.4%.

2. Per Capita Income

Per capita income measures a country’s standard of living by dividing national income by the population.

Under Mahama’s administration, Ghana’s per capita income stood at GHC 5,933 ($1,412) when he left office in 2016.

By contrast, the Akufo-Addo government, despite facing global economic crises, increased per capita income to GHC 24,544 ($2,066) by 2023.

3. Agricultural Growth

Agriculture is a critical driver of Ghana’s economy. However, under Mahama’s leadership, the sector suffered, with growth declining to 2.8% by the time he left office.

The Akufo-Addo government, through initiatives like Planting for Food and Jobs, significantly improved agriculture growth, maintaining rates above Mahama’s record and reaching 5.7% by 2024.

Additionally, agriculture’s contribution to Ghana’s GDP under Akufo-Addo increased to 24.5%, compared to 18% under Mahama.

4. Inflation Rate

Mahama handed over an inflation rate of 15.4%, after years of mismanagement.

The Akufo-Addo administration, however, consistently maintained inflation in the single digits, achieving a 19-year record low of 7.6% in 2019, before external shocks like COVID-19 and the Russia-Ukraine war led to global inflation spikes.

Even amid these crises, Ghana’s inflation rate was kept below 10% in 2021, significantly lower than Mahama’s best record of 11.19% in 2012.

5. Exchange Rate Stability

Mahama left office with a weak Cedi at 4.2 per USD.

The Akufo-Addo government managed the currency well, keeping the exchange rate stable at 6.2 per USD for six years, before external shocks in 2022 led to depreciation.

Despite this, the government left office with the exchange rate at 14.6 per USD in January 2025, after stabilizing from external pressures.

6. Industrial Growth

Mahama’s administration oversaw stagnation in industrial growth, exiting with a 3.31% growth rate.

Under Akufo-Addo, industry expanded significantly, achieving 8.9% growth by Q3 of 2024.

7. Budget Deficit/GDP

Mahama left behind a 6.7% budget deficit, while the Akufo-Addo government improved it to 3.4% by Q3 of 2024.

8. Trade Balance

Under Mahama, Ghana had a negative trade balance of -4%.

By Q3 of 2024, Akufo-Addo’s government had transformed this into a 3.0% positive trade balance, the best in 50 years.

9. Primary Balance

Mahama left office with a primary balance of -1.31%, whereas Akufo-Addo improved it to 0.5% by Q3 of 2024.

10. Current Account Balance

Mahama’s administration recorded a -7% current account balance, while Akufo-Addo improved it to 2.6% by Q3 of 2024.

11. Gross International Reserves

Under Mahama, Ghana’s international reserves stood at $5.784 billion.

Despite global economic shocks, the Akufo-Addo government increased reserves to $8.982 billion.

Conclusion

Given these key economic indicators, one wonders on what basis President Mahama believes he managed the economy better.

How can he claim superior economic management when, under his watch, Ghana’s economy suffered severe setbacks, including power shortages, unpaid arrears, and a near collapse of basic services?

The facts are clear: Mahama’s bold attacks on the Akufo-Addo administration are based on misinformation. If any government’s economic management could be described as “criminal,” it would undoubtedly be Mahama’s first administration.

By Dr. Margaret Coomson, Development Economist