Akufo-Addo’s ‘inflation tax’ is slamming Ghanaians

Economist, Professor Steve Hanke

Renowned economist at the Johns Hopkins University, Professor Steve Hanke, has slammed President Akufo-Addo over the current state of Ghana’s economy which is under an IMF bailout programme.

According to Hanke’s estimation, Ghana is currently experiencing a severe inflation rate of 40% per year, which is significantly higher than the government’s target of 8% per year.

In a post shared via X (formerly Twitter) on July 7, 2024, Prof. Hanke described the Ghanaian economy as “in the tank” and suggested that the current administration’s policies are heavily impacting Ghanaians through what he refers to as an “inflation tax.”

This term implies that the rising prices are effectively acting as a tax on the population, reducing their purchasing power and overall standard of living.

“Pres. Akufo-Addo’s INFLATION TAX is slamming Ghanaians. Today, I accurately measure GHA’s inflation at a PUNISHING 40%/yr, 5x higher than its inflation target of 8%/yr. Pres. Akufo-Addo’s Ghana = IN THE TANK,” he posted.

The professor’s remarks come at a time when Ghana is grappling with a myriad of economic challenges, and his analysis indicates that the situation may be more dire than officially acknowledged.

This is not the first time Prof. Hanke has expressed concerns about Ghana’s economy and other neighbouring countries in Africa as well as Europe and America.

He has previously pegged Ghana’s inflation rate at different figures compared to that of the Ghana Statistical Service’ figures, all of which point to a troubling trend for the country’s financial stability.

The government of Ghana has yet to formally respond to his latest remarks.

See the post below;

#SaveGhanaNow🇬🇭: Pres. Akufo-Addo’s INFLATION TAX is slamming Ghanaians.

Today, I accurately measure GHA’s inflation at a PUNISHING 40%/yr, 5x higher than its inflation target of 8%/yr.

Pres. Akufo-Addo’s Ghana = IN THE TANK. pic.twitter.com/73rXA75lvy

— Steve Hanke (@steve_hanke) July 7, 2024

ID/MA