14th June 2024

President Akufo-Addo

The Economist Intelligence Unit (EIU) says majority of Ghanaians still see Nana Addo Dankwa Akufo-Addo and the New Patriotic Party government as the best option to move the country forward.

The EIU notes that despite the negative economic impact from the coronavirus pandemic, it will be difficult, if not impossible, for the opposition National Democratic Congress (NDC), under John Dramani Mahama, to oust the incumbent Akufo-Addo led NPP administration in the upcoming December 7 elections.

“Despite the negative economic impact from the pandemic, the Economist Intelligence Unit believes that it will be difficult for the NDC under Mr Mahama to portray itself as the better custodian of Ghana’s economy. We, therefore, expect Mr. Akufo-Addo and the NPP to secure re-election,” the EIU noted in its July report on Ghana.

Mahama not trustworthy

According to the report, Ghanaians still do not trust former President John Mahama, under whose presidency the economy witnessed serious mismanagement.

Noting the 2016 public concerns about the economy, which many Ghanaians still attribute to the Mahama led NDC government’s mismanagement, the EIU said the Akufo-Addo administration, regardless of the debilitating effects of the Covid-19 pandemic, has focused on industrialization and infrastructure development.

It added that the government has also focused on outlining ambitious growth plans for the mainstay of the economy, agriculture, with a view to boosting rural incomes.

“The government’s industrialization push and moves to strengthen the banking sector will benefit non-oil economic growth, although the cost of capital will remain a constraint,” the report added.

Future predictions

The EIU, however, expressed concern about the weakening of the economy as a result of the coronavirus pandemic.

“Following a marked weakening of the economy in 2020, reflecting a deteriorating current-account position and investor nervousness ahead of the elections, the pace of cedi depreciation will slow in 2021-24 as the hydrocarbons sector ramps up production and rise in prices,” the EIU said.

It added that after inflation increased to 11.3 per cent in 2020, owing to currency weakness and pandemic-related disruption to supply chains, price rises will slow to an average of 8.8 per cent in 2021-24.

The report advised the NDC to present a coherent challenge and hold the NPP administration to account on some of its unfulfilled campaign promises, which it says can inure to the advantage of the opposition party and take the election to a close contest.

 

Source: Daily Statesman

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