NPP deserves some credit for current economic stability

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An economist and lecturer at the Ghana Institute of Management and Public Administration (GIMPA), Dr. Kwasi Nyame-Baafi, has argued that the erstwhile New Patriotic Party (NPP) government deserves some credit for the current economic stability.

According to him, the past NPP administration implemented some economic measures that have since contributed to the relative stability of the cedi and improvements in other key economic indicators.

Speaking on Asempa FM’s Ekosii Sen on Monday, the economist asserted that the notable decline in inflation did not occur out of the blue but rather the outcome of strategic measures implemented by the previous government, including the Domestic Debt Exchange Program (DDEP).

“Based on the statistics, the National Democratic Congress (NDC) contributed more to our debt situation from 2009 to 2016 than the New Patriotic Party (NPP). Both parties have contributed to the debt levels, but the current government is benefiting from the debt exchange programme, which the NPP undertook as a painful decision during their time in office,” he said. “Therefore, the Mahama administration should acknowledge the NPP for that action.”

Dr. Nyame-Baafi also kicked against claims that Ghana ranks among the leading economies in Africa, pointing to what he described as an “increasing public debt situation,” demanding clarity on the projects he said are driving continued borrowing.

“Additionally, the President gave the impression that Ghana only recently became part of the top economies in Africa due to his economic policies, which I disagree with. In 2016, our nominal GDP was around 219 billion cedis, and by the time the NPP left office, the GDP had crossed 1 trillion,” he claimed.

The economist however acknowledged that while both the NDC and NPP have played roles in Ghana’s rising debt over the years, it is crucial for the current NDC administration to recognize the “difficult economic choices” made by the NPP which, according to him, have led to the current growth in the economy.