Ghana’s economy cannot be described as robust – Joe Jackson

The Chief Executive Officer of Dalex Finance, Joe Jackson, has criticized the description of Ghana’s economy as robust.

He said this cannot be the case given the inconsistent economic indicators over the years.

Speaking to Alfred Ocansey on TV3’s the Keypoints on Saturday, January 11, 2024, on the country’s economic performance, Mr. Jackson highlighted that while reserves have been cited as a sign of economic stability, a deeper analysis of other parameters paints a different picture.

He pointed out that reserves have been precariously low at certain points.

“At the beginning of the year, the reserves were just 0.8% of the months’ worth, barely enough to stabilize the cedi’s value. The government tried to inject funds to shore up the currency towards the end of the year, but the problem is far from solved,” he stated.

Addressing comments by former President Nana Akufo-Addo, Mr. Jackson noted that claims of leaving behind $8 billion in reserves at the end of 2024 failed to capture the full context of the economy’s health.

“He proudly talked about reserves, but ignored other critical indicators like inflation,” Jackson remarked.

Using inflation as an example, he emphasized how misleading isolated statistics can be.

“Inflation in December 2016 was at 7.9%, but when you dig deeper, it’s not the full picture. If inflation for one year was 50%, it doesn’t mean prices decrease in subsequent years when inflation drops. For instance, if an item cost GHS 100 in 2022 with 50% inflation, its price would be GHS 150. Even if inflation drops to 30% the following year, the price rises to GHS 195. Inflation reduction doesn’t mean price reversal,” he explained.

Joe Jackson also criticized political narratives for using selective economic data to create a false sense of progress.

“These figures are sometimes deliberately deceptive, focusing on one favorable indicator while ignoring the challenges in others. For example, inflation trends and exchange rate depreciation are equally critical and often ignored in such claims,” he noted.

He urged the government and stakeholders to focus on sustainable measures rather than short-term fixes, highlighting the importance of building a resilient economic framework that reflects across all parameters, not just reserves or isolated data points.

By Christabel Success Treve