Vice President Dr. Mahamudu Bawumia’s recent comments that Ghana’s economy is built on strong fundamentals have received vindication from Standard & Poor’s Global Ratings.
Dr. Bawumia while speaking at a Student’s Entrepreneurship Initiative program in Tamale dismissed the minority National Democratic Congress’s (NDC) concerns that the recent marginal depreciation of the cedi was occasioned by a weak economic fundamentals.
Examining economic data of the recent past, the Vice President argued that low inflation, reduction of debt to GDP ratio, declining interest rates, increased growth rate, increased manufacturing and agricultural growth among other economic indicators showed that the Ghanaian economy was doing relatively well.
Dr. Bawumia asserted that the 7% depreciation of the cedi was the second lowest since 2012 and that this cannot be evidence of weak economic fundamentals.
The minority NDC was adamant in accepting Vice President Dr. Bawumia’s analysis. Deputy Minority leader James Avedzi and MP for Ketu North rejected Dr. Bawumia’s argument that the economy was doing well.
However, a 12 page report by the credit rating agency, S&P Global Ratings, published on 14th September, 2018, showed Ghana’s economic performance improved which resulted in Ghana being upgraded from B- to B. It is stated in the report that “S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Ghana to ‘B’ from ‘B-‘”. The reputable credit rating agency added that Ghana’s “outlook is stable”.
The verdict by S&P Global ratings seem to have settled the debate on the economy in favor of the ruling New Patriotic Party Government. It is a vindication of Vice President Mahamudu Bawumia, who has maintained that the economy is better managed today than two years ago.