The two main political parties in the country, the ruling New Patriotic Party (NPP) and opposition National Democratic Congress (NDC) have taken to the economic boxing arena, throwing heavy punches at each other over the true state of the Ghanaian economy.
The two heavyweight political parties for the past week, have been jabbing each other, each claiming to have the true reflection of the economy. While the NPP are claiming the fundamentals of the economy are strong, their fiercest rival, the NDC say otherwise.
It all started when the NPP, led by its Vice President who is also the Chairman of the Economic Management Team (EMT) organised its maiden EMT Town Hall Meeting last Wednesday stated Ghana’s debt to GDP stands at 48%, indicating, the economy has been performing better in the last two years than it was under the erstwhile John Mahama administration.
But the NDC, having felt the blow, quickly hit back at their opponent in a counter – economic lecture Thursday, April 4, 2019. Led by the Member of Parliament for Bolgatanga Central, Isaac Adongo, the party noted that, the figure given by the vice president was inaccurate because it was outdated.
He described Dr. Bawumia’s statistics on the economy as ” “cooked figures,” noting that Dr. Bawumia used December 2018 figures of the country’s foreign debt and added same to March 2019 domestic debt.
Throwing punches from the “Green, White, Black, and Red” corner of the NDC, the financial consultant, said, if you use the old series, Ghana’s debt to GDP would have been 72%, something he described as “outrageous.”
He questioned the NPP, saying, “…are you seeing these numbers or you’re seeing something else? That is the reason they are cooking the numbers and are not reporting the full extent of debt.”
The MP also claimed, Ghana’s economy is now being held by just about three foreign investors, explaining “What it means is that only a few people are now holding our external debt and Ghana’s destiny is tied to Franklin Templeton and two, three other investors”.
A situation, he argued, does not only compromise the independence of Ghana’s policy decision making but also increases our vulnerability risks.
The NDC “boxer” also voiced out that, because Dr. Bawumia was coming to do a lecture, they stopped our public debt in December 2018, explaining that, “As for the domestic debt, they reported up to March 2019. They remembered that they had borrowed 3.7 billion which they added to their reserve and showed that the reserve is high so me too I added it.
And when added it appropriately, based on the new series, our debt to GDP is 58 percent but Bawumia claimed it was 48 per cent.”
But it seems the NDC choice of boxer had dealt with their opponent with the right dose of medication for the NPP’s “sickness” in the right proportion, as the party on Sunday threw in a supporting speaker to counter the NDC’s counter on their EMT town hall meeting.
The General Secretary of the NPP, John Boadu claimed, “the NDC, after 8 years of NDC economic management, our rating went down from B+ to B-. Yes, B minus under John Mahama!
After only 20 months of NPP under Nana Addo Dankwa Akufo-Addo, we have already been upgraded from B- to B. Our upgraded credit ratings earned us an oversubscribed Eurobond issue in multiples of 7 at the lowest coupon rate and longer maturity Ghana has ever had.”
The battle between these two political giants is one that one can predict would last long, especially, when election 2020 is in the offing. As for who will win this economic bout, your guess is the best!