The Institute of Economic Affairs (IEA) has criticized the Ghanaian government for its poor macroeconomic performance from 2020 to 2022, attributing it to inappropriate policies such as excessive spending and costly borrowing.
During a post-analysis of President Akufo-Addo's State of the Nation Address (SONA) on April 3, 2024, Dr. John Kwakye, the IEA's Director of Research, emphasized the need for the government to take responsibility for the economic downturn during the mentioned period. He highlighted excessive spending on numerous flagship programs and expensive borrowing as contributing factors.
Dr. Kwakye acknowledged that external factors such as the COVID-19 pandemic and the Russia-Ukraine war had also negatively impacted the economy. However, he emphasized that these shocks exacerbated existing vulnerabilities, worsening Ghana's economic crisis.
Regarding the comparison of macroeconomic indicators, Dr. Kwakye noted that while the President cited improvements in 2023 compared to 2022, using 2022 as the base for comparison was somewhat self-serving. He pointed out that almost all indicators were worse in 2023 than what the government inherited in 2016, highlighting a significant deterioration during 2022-2023.
However, Dr. Kwakye commended the government for the improved outcomes observed from 2017 to 2019, attributing them to improved policies and favourable external conditions, such as stable oil prices and the observance of the Fiscal Responsibility Act (FRA).
