President Nana Addo Dankwa Akufo-Addo has reiterated that, the New Patriotic Party government has maintain a steady economic growth since he was elected President of Ghana.
Clarifying issues on the country’s economy, President Nana Akufo-Addo said, between 2017 and the first quarter of 2020, his Presidency had made considerable gains in the management of the national economy, where we witnessed annual average GDP growth of seven percent (7%), single digit inflation, reduced fiscal deficits with three consecutive years of primary surpluses, a relatively stable exchange rate, a significant improvement in the current account with three consecutive years of trade surpluses, strong foreign exchange reserve buffers, markedly reduced lending rates, and appreciable job creation.
The President during his 2021 State of the Nation Address held on 9th March, 2021 again said, despite the negative havoc caused by the Covid-19, Ghana’s overall economic growth rate for 2020 was revised downwards from 6.8% to 0.9%. The non-oil economy was also revised from 6.7% to 1.6%. Revenue shortfall was estimated at GH¢13.5 billion, with additional expenditures related to stemming the tide of COVID-19 estimated at GH¢11.8 billion, with the combined effect amounting to GH¢25.3 billion, or 6.6% of GDP. The resultant fiscal deficit for 2020 was, thus, revised from 4.7% of GDP to 11.4% of GDP. This was done to reflect the impact of the pandemic. The fiscal responsibility rule of keeping a deficit within a threshold of 5% of GDP and a positive primary balance for every year was suspended in 2020 to enable fiscal operations accommodate the impact of the pandemic.
“Mr. Speaker, in the face of a global pandemic that has ravaged lives and livelihoods in all parts of the world, we cannot afford to pursue interests that will leave our nation and its citizens the poorer for it. COVID-19 has impacted heavily on economic activities, created uncertainty, weakened global growth conditions, whilst putting undue strain on already weak and fragile health systems, particularly in developing countries.”