As the 2024 general election approaches, the economic performance of the country is once again under scrutiny, with critics drawing stark comparisons between the state of the economy under Vice President Dr. Mahamudu Bawumia’s leadership and that of former President John Dramani Mahama in 2016.
Even though Dr. Mahamadu Bawumia is not the main president of Ghana however, every successful economic policy in the ruling new Patriotic Party administration is attributed to him by the President Nana Akufo Addo therefore, it not out of place to draw him into this discussion.
Dr. Bawumia, who chairs the Economic Management Team (EMT), has been widely touted as the architect of the Akufo-Addo government’s economic policies.
However, as the data unfolds, many are beginning to question whether the economy has truly improved under his watch, with some arguing that it has instead deteriorated.
Comparing the Key Economic Indicators: 2016 vs. 2024
A closer look at some of the key economic indicators from 2016, when John Mahama left office, to 2024, under Dr. Bawumia’s tenure, presents a sobering reality for the ordinary Ghanaian.
Exchange Rate
In 2016, the exchange rate stood at $1 = ¢3.7. By 2024, the cedi has depreciated significantly, with $1 now equating to more than ¢15. This dramatic fall in the value of the cedi has impacted the cost of living, increasing the prices of imported goods and contributing to inflationary pressures.
Fuel Prices
The cost of fuel has skyrocketed over the past eight years. In 2016, a gallon of fuel cost ¢14. In 2024, Ghanaians are paying more than ¢14 per litre, a significant increase that has contributed to the high cost of transportation and production, further squeezing households and businesses alike.
Inflation Rate
Inflation has also surged under Bawumia’s watch. In 2016, inflation stood at 14%. Fast forward to 2024, and inflation has ballooned to over 25%, significantly eroding the purchasing power of Ghanaians and making it harder for families to afford basic goods and services.
Unemployment Rate
The unemployment rate has risen sharply since 2016, when it was recorded at 8%. By 2024, this figure has climbed to 14.8%, highlighting a growing jobs crisis in the country. The government’s inability to create sufficient employment opportunities, particularly for the youth, has been a major point of contention.
Public Debt Stock
Perhaps one of the most concerning trends is the explosion of Ghana’s public debt. In 2016, the country’s total debt stood at ¢120 billion. As of 2024, this figure has ballooned to an astronomical ¢760 billion, raising serious concerns about the sustainability of the country’s finances.
Debt-to-GDP Ratio
The debt-to-GDP ratio, a key measure of a country’s debt burden, has worsened dramatically. In 2016, it was 56%, a relatively manageable figure. By 2024, Ghana’s debt-to-GDP ratio has soared past 100%, indicating that the country’s debt now exceeds the total value of its economy. This situation has raised red flags among economists, with many warning of the long-term consequences for economic growth.
Debt Default and Debt Exchange
Unlike in 2016, when Ghana had no need for a debt exchange program, by 2024 the country has defaulted on its debt and been forced into a debt exchange, with bondholders facing significant losses.
This development is unprecedented in Ghana’s history and has further undermined investor confidence.
Access to the Bond Market
In 2016, Ghana had access to the international bond market, allowing it to borrow to finance development projects.
However, by 2024, Ghana has been locked out of the bond market due to its high risk of default, severely limiting the government’s ability to raise funds for critical infrastructure and social programs.
Credit Rating
Ghana’s credit rating has also suffered under Bawumia’s leadership. In 2016, the country held a B rating, which signaled to investors that the country was a relatively stable place to invest.
By 2024, Ghana’s credit rating has been downgraded to junk status, reflecting the significant deterioration in the country’s fiscal and economic outlook.
Debt Per Citizen
The burden of debt on the average Ghanaian has increased dramatically.
In 2016, each Ghanaian was effectively responsible for ¢4,000 of the national debt. By 2024, this figure has risen to ¢19,000, reflecting the sharp rise in public debt and the impact on future generations.
Bawumia’s Leadership Under Question
These figures paint a grim picture of Ghana’s economic performance under Dr. Bawumia, raising serious questions about his role as Vice President and head of the EMT.
Critics argue that his management of the economy has been marked by inefficiency, mismanagement, and a lack of sustainable solutions.
Bawumia’s reputation as an astute economist with a PhD in economics was a key selling point during the 2016 election, but many are now questioning whether he has lived up to that promise.
The widening economic disparities, rising unemployment, and a rapidly deteriorating fiscal situation have left many Ghanaians feeling worse off than they were under Mahama’s administration.
Is Ghana Better Off Today?
Dr. Bawumia and his supporters have often touted their government’s achievements, such as the implementation of digital innovations and social programs.
However, these successes appear overshadowed by the stark realities of Ghana’s economic crisis.
The data reveals that across nearly all major economic indicators—exchange rate, inflation, unemployment, debt, and more—Ghana is performing significantly worse than it did in 2016 under Mahama.
With the 2024 election on the horizon, voters will ultimately decide whether Bawumia’s economic stewardship has delivered on its promises, or whether his tenure as Vice President has left the country worse off than it was eight years ago.
The comparison between 2016 and 2024 presents a compelling argument for those who believe the country needs a change in leadership to steer it out of its current economic difficulties.
Source: Emmanuel Amoah (love Enterprise) member of Movement for Change Alliance , Ashanti.
