The Truth About Ghana’s GDP Growth Under Akufo-Addo
President Nana Akufo-Addo recently claimed, “Ghana’s GDP has grown in multiples of four since I took office.” This bold statement underscores GDP’s importance as a key economic performance indicator. But does the data support it?
Analyzing the Numbers
When Akufo-Addo assumed office in 2017, Ghana’s GDP stood at approximately $59 billion. By 2023, the figure rose to about $88 billion (nominal), according to World Bank data. While this reflects notable growth, it falls short of quadrupling. Real GDP growth, which adjusts for inflation, averaged about 5% annually during his tenure, indicating steady progress but not exponential growth.
This growth is attributed to various factors: policy reforms like the Planting for Food and Jobs initiative, improved tax collection, and external drivers such as favorable global commodity prices for gold and cocoa. However, challenges like the COVID-19 pandemic and global inflationary pressures tempered these gains.
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The Truth Behind the Statement
While nominal GDP figures show progress, the claim of a fourfold increase is exaggerated. Moreover, inflation and currency depreciation dilute the impact of nominal growth. Real GDP provides a more accurate picture, highlighting consistent but moderate economic expansion rather than dramatic leaps.
Impact on Ghanaians
GDP growth is meaningful only if it improves lives. For many Ghanaians, economic growth has not translated into significant changes in employment opportunities, income levels, or access to essential services. Rising public debt and inflation remain pressing concerns, affecting ordinary citizens’ cost of living.
Ghana’s economic progress under Akufo-Addo shows a mix of achievements and challenges. What do you think about Ghana’s economic trajectory during his tenure? Share your thoughts below and spread the conversation!
Source: Xtrememediaonline.com