Felix Ofosu Kwakye’s Claim on Economic Growth Rate False

Felix Ofosu Kwakye, former Deputy Communications Minister, on Saturday, June 13, 2020, made a claim on Joy FM about the economic growth rate of Ghana.

The former minister made the claim on Joy FM’s current affairs programme, Newsfile, in a discussion about the macroeconomic performance of Ghana during the administration of the opposition National Democratic Congress (NDC).

The MFWA fact-checking team has examined his claim. Below is the claim, verdict and explanation to the verdict.

Claim: “Indeed, this year they [NPP] will record the worst ever economic growth in the last 40 years which is 1.5%.”

Verdict: False

Explanation: Economic growth rate (GDP growth rate) measures the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period.  According to the Ghana Statistical service (GSS), the GDP growth rate for 2019 was 6.5%.

Following the impact of the coronavirus pandemic on the economy, the finance minister, Ken Ofori Atta, projects that GDP will grow at 1.5% instead of the 6.8% target for 2020. However, 1.5% will not be the lowest GDP growth rate since 1980, which is the last 40 years.

According to data from the World bank, Ghana has recorded GDP growth rates lower than 1.5% since 1980. From 1981 to 1983, the country recorded negative growth rates. Below is a table showing the GDP growth rates from 1980-1983.

From the above data, the projected growth rate of 1.5% in 2020 cannot be said to be the lowest in the last 40 years.

Source: Michael Sarpong Mfum