11 reasons why Mahama is seriously poorly informed about the economy

Last week, at a meeting with labor unions to discuss the inadequate upward adjustment of 10% of the basic public salaries of his government, President John Dramani Mahama caused a stir by launching scathing attacks against the economic management record of his predecessor. He accused the previous government of “criminally administering” Ghana’s economy.

Some analysts have described Mahama’s comments as unfounded and attributing. When calling Ghana’s economy a “crime scene” under the Akufo-Addo administration, he effectively described his officials, who administered the economy in the last eight years, as criminals.

Mahama’s comments were clearly a deliberate ploy to discredit the economic management of the Akufo-Addo government while painting a gloomy economic image to justify its shortage and widely criticized 10%salary increase.

Although Mahama’s choice of words has been convicted, the scenario in which he made these comments has also raised questions about his sincerity regarding Ghana’s economic management, both under his previous administration (2012-2016) and now.

For a man who previously served as president and whose registration of economic management is well documented, many have questioned their bold statements. Some have compared their accusations of “the pot that calls the black teapot.”

The truth is that Mahama’s economic management during his first term was much worse than that of the Akufo-Addo government, which now criticizes without foundation.

Taking into account the Local Enviable Economic Management Registry of Mahama, one wonders how the boldness of condemning a government whose key economic indicators are demonstrably stronger.

In almost all key economic indicators, the first administration of Mahama registered poor numbers, exposing its inability to address Ghana’s economic challenges. This contributed to his humiliating history as the only president in the fourth republic to lose an election.

Mahama’s persistent attempts to paint the Akufo-Addo government in a negative light, despite their own sad history, leave many to get three possible conclusions:

President Mahama, with due respect, does not understand these key economic indicators and their comparative implications.
He believes that the Ghanaians have forgotten their poor record eight years ago.
He is being poorly informed or deceived by his economic advisors.

According to the evidence available, I firmly believe that Mahama is being poorly informed by his financial assistants. If it were fully aware of the bad economic indicators registered under their leadership (2012-2016) and its devastating impact, it would not dare to attack the relatively better record of the Akufo-Addo administration.

11 reasons why President Mahama is poorly informed about economic data

1. Economic growth

Mahama’s bad economic management between 2012 and 2016 is reflected in Ghana’s daring economic growth under his administration.

Despite not facing any important global economic crisis, its government supervised a constant decrease in GDP growth, which culminated in a disappointing growth rate of 3.4% when it left office in 2016.

Worse, in 2015, Ghana’s GDP growth collapsed to 2.1%, the lowest in 32 years, despite the absence of external economic clashes.

In contrast, after inheriting the growth rate of 3.4% of Mahama, the Akufo-Addo government constantly improved economic growth, achieving 6.51% in 2019 before Pandemia COVID-19 severely impacted the global economy.

Although the pandemic caused Ghana’s growth rate to fall to 0.51% in 2020, the government quickly recovered with a growth rate of 5.08% in 2021. However, the Russia-Ukraine war in 2022 further affected global economies, which led to a slight decrease of growth to 3.82% in 2022 and 2.95% in 2023.

Despite these crises, the Akufo-Addo government left office with a much better growth rate of 7.2%, significantly higher than the final 3.4%of Mahama.

2. Per capita income

Per capita income measures the standard of living of a country by dividing national income by the population.

Under the administration of Mahama, Ghana’s per capita income was in GHC 5,933 ($ 1,412) When he left office in 2016.

On the contrary, the Akufo-Addo government, despite facing global economic crises, increased per capita income for GHC 24,544 ($ 2,066) for 2023.

3. Agricultural growth

Agriculture is a critical driver of Ghana’s economy. However, under Mahama’s leadership, the sector suffered, with decline growth to 2.8% When he left office.

The Akufo-Addo government, through initiatives such as Planting food and jobssignificantly improved agricultural growth, keeping rates above Mahama’s record and reaching 5.7% by 2024.

In addition, the contribution of agriculture to Ghana from Ghana under Akufo-Addo increased to 24.5%compared to 18% under Mahama.

4. Inflation rate

Mahama delivered an inflation rate of 15.4%After years of poor management.

However, the Akufo-Addo administration constantly maintained inflation in the unique digits, achieving a A minimum 19 -year record of 7.6% in 2019Before external shocks such as Covid-19 and the Russia-Ukraine war, they led to global inflation peaks.

Even in the midst of these crises, Ghana’s inflation rate was Kept below 10% in 2021significantly lower than the best mahama record of 11.19% in 2012.

5. Exchange rate stability

Mahama left office with a weak CEDI in 4.2 By USD.

The Akufo-Addo government administered the currency well, maintaining the stable exchange rate in 6.2 By USD for six yearsBefore external shocks in 2022, it led to depreciation.

Despite this, the government left office with the exchange rate in 14.6 By USD in January 2025after stabilizing from external pressures.

6. Industrial growth

The administration of Mahama supervised the stagnation in industrial growth, leaving a Growth rate of 3.31%.

Under Akufo-Addo, the industry expanded significantly, achieving 8.9% growth for the third quarter of 2024.

7. Budget deficit/GDP

Mahama left a 6.7% budget deficitwhile the Akufo-Addo government improved 3.4% for the third quarter of 2024.

8. Commercial balance

Under Mahama, Ghana had a negative trade balance of -4%.

For the third quarter of 2024, the Akufo-Addo government had transformed this into a 3.0% positive commercial balanceThe best in 50 years.

9. Primary balance

Mahama left office with a main balance of -1.31%While Akufo-Addo improved him 0.5% for the third quarter of 2024.

10. Current account balance

The administration of Mahama registered a -7% current account balanceWhile Akufo-Addo improved him 2.6% per third quarter of 2024.

11. GROUSE INTERNATIONAL RESERVES

Under Mahama, Ghana’s international reserves stopped in $ 5,784 billion.

Despite global economic shocks, the Akufo-Addo government increased reserves to $ 8,982 billion.

Conclusion

Given these key economic indicators, one wonders on what basis President Mahama believes that he administered the economy best.

How can a higher economic management claim when, under its surveillance, Ghana’s economy suffered severe setbacks, which include energy shortage, unpaid delays and a nearby collapse of basic services?

The facts are clear: Mahama’s bold attacks against the Akufo-Addo administration are based on erroneous information. If the economic management of any government could be described as “criminal”, it would undoubtedly be the first administration of Mahama.

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