Claim: Chairman of the New Patriotic Party’s Manifesto Subcommittee on the economy, Dr. Mark Assibey-Yeboah, has claimed that the GDP growth and the budget deficit for the first half of 2024 were 4.7% and 2.4%, respectively.
Verdict: Misleading. While the claim about GDP growth for the first half of 2024 is accurate, the assertion of a 2.4% budget deficit is false. According to the 2024 mid-year budget statement and economic policy, the actual deficit stands at 3.7%.
Full Text
The Chairman of the New Patriotic Party’s (NPP) Manifesto Subcommittee on the economy Dr. Mark Assibey-Yeboah, appears on TV3’s Business Focus on Tuesday, Sep. 17, 2024 to elaborate on the economic promises outlined by the party’s manifesto by its flagbearer, Dr. Mahamudu Bawumia, as the election season draws near. Among the key pledges discussed were the abolition of the e-levy and the introduction of a flat tax rate. However, during the interview, Dr. Assibey-Yeboah made a number of claims, prompting the need for fact-checking. The episode, streamed live on Facebook, garnered nearly 3,500 views by Sep. 17, 2024.
Claim 1: The first quarter of the Gross Domestic Product (GDP) was 4.7%. (34:58 – 35:01)
Verdict: True. Data from the 2024 Mid-Year Budget Statement and Economic Policy confirms it.
Verification
The Ghana Statistical Service defines gross domestic product (GDP) growth as the main indicator of economic performance. Gross Domestic Product (GDP) growth is like measuring how much a country’s “money-making machine” gets bigger each year. Imagine a country that is like a big factory, and everything the people in the country make or do is farming, building, or teaching.
This work adds to this factory’s production. So when one says the GDP is growing, it means the factory is making more things and providing more services than before.
The bigger it grows, the more jobs and money. So with the claim by Dr. Mark Assibey-Yeboah, it means the economy grew in the first quarter of 2024.
DUBAWA’s research drew on the latest figures from the Ministry of Finance, specifically the 2024 Mid-Year Budget Statement and Economic Policy.
This document provides insight into the government’s financial performance for the first quarter of 2024. Our research revealed that the GDP growth rate was 4.7%, as stated on page 3 of the document.
“Growth continues to exceed our expectations. The 4.7 percent growth rate reported by the Ghana Statistical Service for the first quarter of 2024 exceeds the 3.1 percent recorded in the same period in 2023.” The budget statement stated.
Claim 2: The deficit has done 2.4% within the first half of the year. (35:03 – 35:07)
Verdict: False. Data from the 2024 Mid-Year Budget Statement and Economic Policy reveals that the budget deficit was 3.4%, not 2.4%.
Verification
Contrary to claims made by Dr. Assibey, the 2024 Mid-Year Budget Statement and Economic Policy reveal a higher budget deficit than what he claimed. While Dr. Assibey stated it was 2.4%, the actual deficit for the first half of 2024 stands at 3.4%. This discrepancy can be verified on page 11 of the official document.
“Mr. Speaker, the overall cash budget deficit was GH¢36.1 billion (3.4% of GDP), compared with the deficit target of GH¢35.2 billion (3.3% of GDP). The corresponding primary balance (on cash basis) was a deficit of GH¢17.1 billion (1.6% of GDP), compared with the period target of GH¢8.8 billion (0.8% of GDP).” The document indicated.
Conclusion
In conclusion, our fact-checking reveals a mixed outcome regarding the claims made by Dr. Mark Assibey-Yeboah. The claim about GDP growth in the first quarter of 2024 being 4.7% is accurate, as confirmed by the 2024 Mid-Year Budget Statement and Economic Policy. However, the claim regarding the budget deficit being 2.4% in the first half of 2024 is false. The same document shows the actual deficit is 3.4%, a significant difference from what was stated.
