A Development Economist and a Senior Research Fellow at the Centre for Social Policy Studies (CSPS) of University of Ghana, Dr. George Domfe, has stated that the woes of the country’s economy cannot be blamed on the immediate past Finance Minister, Ken Ofori-Atta.
Speaking on Atinka TV’s Agenda Show on Wednesday, February 15, 2024, Dr. Domfe said it is erroneous to blame Mr. Ofori-Atta for the challenges the Ghanaian economy faces.
“At the beginning of 2022, Ghana had over GH¢9 billion reserves but the extraneous factors came in to disrupt the economic growth trajectory. It happened to be the highest nominal reserves ever for the country” he said.
“The war Putin waged on Ukraine drove oil prices from $72 per barrel to $121 in 2022. The Finance Minister of Ghana does not control that” he averred.
Dr. George Domfe also indicated that unlike the US economy which is not affected if the one in charge of finances even gets sick, Ghana is different, adding, Ghana’s financial sector is not that responsive to such changes.
“Ghana’s economy is not so well integrated into the global economy and for that matter, the removal of the Finance Minister, Ken Ofori-Atta, will not have any effect on the economy”.
Dr. Domfe also indicated that COVID-19 also had debilitating effects on the economy as prices of the factors of production went astronomically high, thereby affecting prices of goods in the country.
“The global supply chain was hugely hit by the closures of factories due to COVID-19. Production went critically low, leading to more monies chasing few goods” he indicated, citing the effects on even the developed economies.
He held that when production factors have their prices increased, the resultant effects were that importers and manufacturers had to adjust their prices upward, and that contributed significantly to bringing the economy to its knees.
“When all these factors are taken into consideration, it’d be an error of judgment to hold Ken Ofori-Atta responsible for our economic crisis. He also is not to blame”, he stated.
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