The mere fact that GDP is growing doesn’t mean all is well – Prof. Godfred Bokpin

Economist and Professor of Finance, Prof. Godfred Bokpin says Ghana must not celebrate its GDP growth when it is not reflected in the people's lives.

According to him, the fact that the country’s GDP is growing does not mean all is well in the country.

Speaking to Joy News in an interview after President Akufo-Addo delivered his State of the Nation Address, Prof. Godfred Bokpin said the country has not made any significant progress in the seven years that the ruling New Patriotic Party (NPP) has been in power.

“I don’t think we have made much progress. And if you see what the president is recounting this is what our leaders have been doing in the last couple of years. We are counting projects, and physical things here and there but how do all of these work together to improve lives, that disconnect is there.

“The mere fact that GDP is growing does not mean all is well. We are not going to celebrate GDP growth because it does not necessarily imply that standards of living or development have come. Things haven’t gone well especially how we managed Covid, the election and all,” Prof. Godfred Bokpin said.

His argument comes after President Akufo-Addo said in his State of the Nation Address that the country’s macroeconomy is now very strong.

The President in his address touted how GDP turned positive at the end of September 2023, from negative two-point-one per cent (-2.1%) at the end of December 2022.

President Akufo-Addo said it is clear that the macroeconomic indicators are pointing in the right direction.

“Indeed, the macroeconomy was much stronger at the end of 2023 than in 2022. Inflation, which peaked at 54.1% in December 2022 has reduced to 23.5% in January 2024. Real GDP Growth for the first three quarters of 2023 averaged 2.8 percent, higher than the targeted growth rate of 1.5% for 2023. The cedi has been largely stable since February 2023, with a cumulative depreciation of nine percent (9%) between February and December 2023.

“Gross International Reserves reflected a significant buildup of at five-point-nine billion dollars (US$5.9 billion), enough to cover 2.7 months of imports of goods and services. The current account turned positive at 1.4% of GDP at the end of September 2023, from negative two-point-one percent (-2.1%) at the end of December 2022. Generally, the macroeconomic indicators are, once again, pointing in the right direction,” President Akufo-Addo said in Parliament on Tuesday.