The Danquah Institute (DI) on Tuesday (13 February) presented empirical evidence to support the New Patriotic Party’s (NPP’s) claim of being “better managers of the economy” than the opposition National Democratic Congress (NDC).
At a press briefing on Tuesday (13 February), the Danquah Institute indicated that its comprehensive data demonstrates that the NPP holds a distinct positive track record of performance over the NDC, and are (NPP), therefore, the better managers of the economy.
The empirical evidence, encompassing the various economic indicators, GDP growth, inflation, exchange rate, debt-to-GDP, fiscal policy, credit rating and primary balance, underscores the efficacy of the NPP’s policies in fostering economic growth, stability, and resilience.
According to the Danquah Institute, from fiscal responsibility to debt management, the NPP’s track record showcases a commitment to sound economic principles.
In contrast, the NDC’s historical performance raises concerns, especially in the areas outlined in our presentation. The data underscores instances where the NDC’s governance was marked by economic challenges even though there were no exogenous shocks, raising questions about the effectiveness of their policies.
Moreover, the NPP’s ability to navigate global economic challenges and maintain a positive trajectory amid external shocks sets it apart.
The resilience displayed by the NPP in steering the Ghanaian economy towards sustainable development is evident in the positive outcomes being witnessed currently, the DI said.
GDP growth
For instance, the Danquah Institute empirical evidence shows that in 2011 immediately after commencement of the oil production in commercial quantity, the country recorded a historical GDP growth rate of 13.95% in 2011.
This growth rate continuously declined to 2.86% in 2014 and further down to 2.12% in 2015 before rising marginally to 3.37% in 2016.
DI indicated that its research confirms that, Dr Bawumia rightly pointed to the fact that between 2013-2016, Ghana’s GDP growth averaged 3.9%.
Comparatively, as Dr Bawumia emphasised, between 2017 and 2020, GDP growth surged to an average of 5.3%. The Ghanaian economy witnessed substantial growth. From 3.37% in 2016, the economy remarkably grew to 8.13% in 2017.
While acknowledging that the 2017 economic growth was largely influenced by the oil sector (similar to the case in 2011), the non-oil sector growth, stood at 4.9% in 2017, showing a positive growth from 2016. The robust GDP growth performance was supported by a significant rise in agricultural GDP growth, climbing from an average of 2.9% between 2013 and 2016 to an average of 6% between 2017 and 2022.
Exchange rate
According to DI, on 7 January 2013, one US dollar was exchanged for GHS 1.8725 (interbank exchange rate). However, by 7 January 2017, the exchange rate had increased to GHC4.2141 for US$1.
On the whole, the average depreciation of the cedi against the dollar was 17.7% from 2013 to 2016 as Dr Bawumia articulated in his delivery.
From 2017 to 2020, there was a notable reduction in the cedi depreciation rate to an average of 7.5%. Furthermore, the average cedi depreciation decreased to 6.8% between 2017 and 2021.
“In light of these findings, it is imperative for Ghanaians to carefully evaluate the economic track records of both parties [NDC and NPP] as they make informed decisions about the future leadership of our dear nation, Ghana,” the Danquah Institute concluded.
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