NPP Dismisses Mahama’s Claims of Economic Mismanagement

The New Patriotic Party (NPP) has strongly rejected President John Dramani Mahama’s assertion that the Akufo-Addo administration “criminally handled” Ghana’s economy.

Speaking to organized labor in Accra on February 20, President Mahama expressed concerns over what he described as reckless economic management by the previous administration.

“We all knew the economy was in crisis, but some of the things I am discovering myself show that our economy was criminally handled. Ghana is a crime scene because I cannot understand how a government can be so reckless,” Mahama stated.

He further emphasized the need for immediate action to restore economic stability, instructing the Finance Minister to implement significant expenditure cuts to prevent further strain on Ghanaian households.

NPP’s Response

However, in a statement on his X page, NPP’s Director of Communications, Richard Ahiagbah, dismissed Mahama’s claims as unfounded.

“On President Mahama’s comment that Ghana’s economy was criminally handled, nothing could be further from the truth. The economic data tells a different story,” Ahiagbah asserted.

He highlighted several key economic achievements under the Akufo-Addo administration:

• Gross International Reserves: The reserves stood at $9 billion, higher than the $6.2 billion inherited from the Mahama administration in 2017, providing four months of import cover compared to the 3.5 months left by Mahama.

• Economic Growth: Ghana saw progressive growth in 2024, with figures of 4.8%, 7%, and 7.2% in the first three quarters, surpassing the 3.4% growth recorded when Mahama left office in 2017.

• Trade and Current Account Balance: The trade balance achieved a surplus of $3.85 billion, while the current account balance improved to a surplus of 2.6% of GDP, compared to a 6.6% deficit in 2017.

• Macroeconomic Stability: Inflation dropped from 54.1% in December 2022 to 22.1% in October 2024, external reserves improved, and the debt-to-GDP ratio fell from 79.2% to 74.6%.

Ahiagbah also noted the successful external debt restructuring, which resulted in a $2.86 billion debt relief package, with $657 million accessible in the current fiscal year.

Public Sector Salary Adjustments

In response to economic hardships, the Akufo-Addo-Bawumia government implemented significant salary adjustments for public sector workers:

• 30% increase in 2023

• 23% increase from January to June 2024

• 25% increase from July to December 2024

Ahiagbah argued that these developments contradict claims of economic mismanagement. “We endured challenges, especially due to the impact of COVID-19 and necessary debt restructuring, but our government took decisive steps to stabilize the economy. In time, Ghanaians will distinguish between those who talk and those who deliver,” he concluded.

Looking Ahead

As Ghana navigates its economic future, the debate between the current administration and the opposition is set to intensify. While Mahama insists on financial prudence and accountability, the NPP stands by its track record of economic recovery and growth. The coming months will be crucial in determining public confidence in the government’s fiscal policies.