It appears the debate on which political party better manages the Ghanaian economy has been settled, as US-based Ghanaian economist, Prof. Dennis Nsafoah, says he hasn’t observed any significant difference after analysing economic data from 1992.
The New Patriotic Party (NPP) has consistently claimed that it manages the Ghanaian economy better when in power compared to the National Democratic Congress (NDC), a claim vehemently disputed by the latter.
Nsafoah, an Associate Professor of Economics at Niagara University, mentioned that in all the data he analysed, the debt-to-GDP ratio, real GDP growth, average inflation rate, and cedi depreciation were nearly identical for both the New Patriotic Party and the National Democratic Congress.
Speaking at The Investment Dialogue, jointly organized by Citi TV/Citi FM and Tesah Capital on Thursday, February 15, 2024, Prof. Nsafoah clarified that the NPP has, over the years, performed better in terms of cedi depreciation compared to the NDC.
However, he emphasized that this difference is still not statistically significant, especially when one considers all other economic variables.
“Does an NPP-led administration perform better than an NDC-led administration in terms of economic performance? This should no longer rely on anecdotal evidence. We have enough data from 1992 to empirically provide support for any perception,” he said.
“I analysed the data for these five variables depending on who was in charge of the administration. My overarching conclusion is that I found insufficient evidence to support the claim that one party’s economic performance is superior to another party’s economic performance. When we examined the real GDP growth rate, there was no statistical difference between the NDC and the NPP. With regard to per capita growth rate, average inflation, and public debt-to-GDP ratio, there was no statistical difference.”
“The only variable I saw a statistically significant difference was the cedi depreciation rate. It turns out that, in the years the NPP has been in the helm of affairs, the cedi has performed better than when the NDC is at the helm of affairs. Regardless, this does not conclude the debate on who performs better than the other,” he added.
The Investment Dialogue was themed “Clarity in the Chaos” and was broadcast live on Citi TV and Citi FM. It was moderated by the General Manager of Citi TV/Citi FM, Bernard Koku Avle.