The Executive Director of the Institute of Economic Research and Public Policy (IERPP), Dr. George Domfe, has dismissed claims that Ghana’s economy was not adversely affected by the COVID-19 pandemic and the Russia-Ukraine war.

According to him, Ghana's inflation rate dropped from 15.4% to 7.6% in September 2019 under the leadership of Nana Addo Dankwa Akufo-Addo, marking the lowest recorded in recent history.

Speaking on TV3's Key Points show, Dr. Domfe stated that the outbreak of COVID-19 and the Russia-Ukraine war severely impacted the local economy, leaving it in a fragile state.

“When Nana Akufo-Addo took over in 2017, inflation was 15.4%. By September 2019, it had dropped to 7.6%, the lowest in recent history. You can verify these figures from the Bank of Ghana. COVID-19 came unexpectedly and disrupted everything. We cannot underestimate the adverse impact it had on our economy,” he said.

“By January 2022, inflation stood at 13.6%, still lower than the 15.4% inherited by Nana Akufo-Addo. However, by February 2022, it had risen to 15.7%, marking the first time in his 62-month administration that inflation exceeded what he inherited from President John Dramani Mahama. The fact that inflation reached 54% by the end of 2022 clearly indicates that external shocks were hitting the economy,” he added.

Dr. Domfe further explained that the Russia-Ukraine war worsened global economic conditions, and Ghana was no exception.

“Production levels in Ukraine dropped due to the war, triggering severe ripple effects worldwide. We cannot ignore these two major events when discussing the economic challenges faced under President Akufo-Addo,” he emphasized.

The development economist, who is also a Senior Research Fellow at the Centre for Social Policy Studies (CSPS) at the College of Humanities, University of Ghana, highlighted the resulting inflationary pressures on essential commodities.

“During this period, the price of crude oil soared from $72 to $121 per barrel on the global market. This meant that Bulk Distribution Companies (BDCs) had to purchase oil at exorbitant prices, and they couldn’t be expected to sell it cheaply. In addition, freight charges increased by 300%, yet Nana Akufo-Addo does not control shipping lines or determine their charges,” Dr. Domfe pointed out.

Addressing inflation concerns, he noted that several major economies faced similar challenges.

“Germany recorded its highest inflation in 70 years, the United States in 40 years, and the UK in nearly four decades. Inflation became a major global concern,” he said.

Dr. Domfe challenged his co-panelists and critics to propose alternative solutions for managing the economy under the circumstances the Akufo-Addo administration faced.

“Until we acknowledge the fundamental weaknesses of our economy and work towards strengthening them, we will keep revisiting these issues in the years to come. Very little could have been done to prevent the economic downturn beyond what the Akufo-Addo government implemented,” he argued.

He further stated that at the beginning of 2025, Ghana had total reserves of approximately $8.9 billion as a buffer, compared to the $6.1 billion left by the Mahama administration.

He noted that demand for the dollar surged due to increased global commodity prices caused by COVID-19 and the war in Europe.

SA/MA

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