All economic indicators Under Mahama were going in the wrong direction, and it was difficult to reverse – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has recounted that when he came into office in 2017, all the macroeconomic indicators left behind by the John Mahama administration were pointing in the wrong direction.

By dint of hard work, he said, his administration managed to change the narrative.

However, he stated that the outbreak of the Covid pandemic and also the Russia-Ukraine war destroyed all the gains that his administration made in the economy.

Speaking at the 3rd Qatar Economic Forum on Tuesday, May 23, he said “When we came into office in 2017 the Ghanaian economy at the time was growing at about 3.4 percent GDP which in fact was one of the slowest rates of growth in the last 20 years, inflation was extremely high, and the interest rate was high.

“All the macroeconomic indices at the time were pointing in the wrong direction and we were under an IMF programme. It took a long time and pains to correct the trajectory of the Ghanaian economy.”

He added “So, by the end of my first term, the annual rate of growth had gone up to 7 percent, we had now stabilized our currency, the interest rate was on a steep decline, and inflation also.

“So you would say that before the Covid pandemic, the Ghanaian economy had achieved macroeconomic stability and was in the process of rapid growth. Come the Covid 19 pandemic followed by the Russia-Ukraine disaster, they had a tremendous impact.

“Suddenly, we have been facing major challenges with our balance of payment, our currency had a steep decline, the interest rate was out of the window, inflation, all the indices that have been worked on. That is what basically forced us to go to seek the assistance of the International Monetary Fund.”

He further explained why the deal with the Fund was delayed.

“We went in July last year and it has taken us July to May tO secure the programme. Usually, the negotiations with the IMF take time. In fact, the 10 months which have been involved in the Ghanain programme is one of the fastest on record.

“There is a whole lot of stuff that you had to go through in terms of exchange of data, negotiations, and making sure that the macro indices you are looking for are in the right direction.

“All of these may take time, nevertheless, it is over. Now we believe that it is going to provide us with the foundation for redirecting the economy, repositioning the Ghanaian economy firstly to regain the macro stability that has been lost, secondly, to be able to have better control over important details like the interest rate inflation and then finally also to position us to be able to back to the international capital market which has been a source of funding for us for the first three or four years of our government.”