Dr. George Domfe, a Development Economist and Senior Research Fellow at the Centre for Social Policy Studies (CSPS) of the University of Ghana, has refuted claims blaming the country’s immediate past Finance Minister, Ken Ofori-Atta, for the current economic challenges.
During an appearance on Atinka TV’s Agenda Show on Wednesday, February 15, 2024, Dr. Domfe argued that it would be erroneous to attribute the country’s economic woes to Mr. Ofori-Atta. He highlighted that at the beginning of 2022, Ghana had over GH¢9 billion in reserves, which was the highest nominal reserves ever for the country. However, external factors disrupted the economic growth trajectory.
Dr. Domfe pointed out that the war in Ukraine, led by Putin, caused a drastic increase in oil prices from $72 per barrel to $121 in 2022, which the Finance Minister of Ghana does not control. He emphasized that the Ghanaian financial sector is not responsive to such changes and is less integrated into the global economy compared to the US economy, where a change in the person in charge of finances does not greatly affect the economy.
Moreover, Dr. Domfe also attributed the economic downturn to the impact of COVID-19, which caused prices of production factors to soar, leading to increased prices of goods in the country. He explained that the global supply chain was severely affected by factory closures due to the pandemic, resulting in low production and inflated prices.
Dr. Domfe concluded by dismissing the notion that Ken Ofori-Atta is solely responsible for the economic crisis, emphasizing that it would be an error of judgment to hold him accountable. The views expressed in this article do not necessarily represent the views or policy of Multimedia Group Limited.
