Adnan Adams Mohammed
An economist and a Professor at the University of Ghana Business School has shared in pains of Ghanaians for going through an expensive economic recovery.
He explains that although the inflation rate has dropped, it does not mean that prices are reducing. Rather, he said, it means the rate at which prices are increasing has slowed.
The economist further notes that although Ghana’s economy has witnessed some recovery, it is not yet back to where it was prior to the outbreak of the COVID-19 pandemic. Giving an instance that, the current exchange rate does not align with what existed pre-Covid. The private sector has also not recovered yet, he added.
“We have turned one corner but there are several corners to be turned. It is going to take us a little while to do that …we are going through an expensive economic recovery”, Prof Godfred Bokpin shared in an interview last week.
Indicating that, interest rate necessary hasn’t come down, we have seen some recovery but we cannot say the economy has received to pre covid level. We are not there yet, there is still a lot we have to do. Even if you look at the interest rate pre-pandemic and after-pandemic, they don’t align.
“Inflation may be coming down but it doesn’t mean prices are coming down. So the fact that the rate of inflation has decelerated from 54.1% in December 2022 to 22.1% in October 2024 necessarily does not mean prices, on average, have come down. What it tells us is that prices are increasing but rather at a slower rate,” he said.
His comments come at a time when President Akufo-Addo had said that the economy is recovering.
President Akufo-Addo said this fortnight ago, when he commissioned The Bank Square, the new headquarters of the Bank of Ghana, located in the heart of Accra that “Recent data from the Bank of Ghana shows that Ghana’s economy is firmly on the path of recovery. Provisional GDP growth of 6.9% in the second quarter of 2024, with a robust non-oil growth of 7.0%, highlights the strength of our agriculture, industry, and services sectors.
“Inflation has been sharply reduced from 54.1% in 2022 to 22.1% as of October 2024, bringing relief to households and businesses alike. These achievements are further bolstered by a trade surplus of $2.78 billion and international reserves of $7.5 billion, which provide a strong buffer against external shocks,” he said.
He added “This milestone is a testament to the Bank of Ghana’s commitment to sound monetary policies under the leadership of Governor Ernest Addison and his dedicated team. I applaud their efforts, as well as the creativity and expertise of the architects, engineers, and contractors—especially GoldKey Properties, a wholly Ghanaian entity—that brought this vision to life. Together, we are building a foundation for a resilient economy, inclusive growth, and a brighter future for all Ghanaians.
“As we celebrate this achievement, I call on all of us to continue working together to build an economy that is stable, inclusive, and prosperous. The Bank Square is not just a symbol of what we have accomplished; it is an inspiration for what lies ahead. Let us remain united in our efforts to make Ghana great and strong!”
