On Good Morning Ghana, Sammy Gyamfi and Dr. Frank Bannor had a heated debate about the main causes of inflation in Ghana.
A heated debate erupted on Good Morning Ghana between economist Dr. Frank Bannor from the Danquah Institute and NDC’s National Communications Officer, Sammy Gyamfi, over the primary cause of Ghana’s inflation.
Dr. Bannor argued that the Bank of Ghana’s practice of money printing between 2021 and 2022 is not the main cause of the country’s high inflation.
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He compared the current situation to 2012 when the central bank also financed a government deficit, yet the inflation rate in 2013 was not as high as it is now.
“When the central bank financed the government’s deficit of 11.6% of GDP in 2012, the inflation rate in 2013 was not 17%,” Bannor explained. “This suggests that money printing alone is not responsible for the current high inflation rate.”
Sammy Gyamfi, however, countered this view, attributing Ghana’s economic difficulties to excessive and poorly managed government spending.
Gyamfi argued that despite receiving significant donor funds and loans, the government squandered resources, particularly using COVID-19 as a pretext for reckless expenditure aimed at political gain.
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“They used COVID as an excuse to spend irresponsibly for election purposes,” Gyamfi said. “This led to a 16% deficit, as reported by the IMF. It wasn’t caused by external factors like statements from Joe Biden or actions by Putin. In 2020, Putin hadn’t even gone to war. The deficit was the result of mismanagement and excessive spending.”
Dr. Bannor acknowledged that global factors, including the COVID-19 pandemic and the Russia-Ukraine war, have impacted Ghana’s inflation.
Yet, Sammy Gyamfi dismissed these points, insisting that while global events do play a role, the primary cause of Ghana’s economic problems is the government’s mismanagement and reckless spending.
Watch the attached video below for more:
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