The Economist Intelligence Unit (EIU) has predicted that President Akufo Addo will beat flagbearer of the opposition National Democratic Congress (NDC), John Mahama in the December elections.
According to the report, Ghanaians still have doubts about former president John Mahama whose administration saw the economy suffered severe criticism.
The EIU further indicated that the Akufo Addo led government’s focus on industrialization and bank sector clean up will benefit non-oil economic growth.
“The government’s industrialization push and moves to strengthen the banking sector will benefit non-oil economic growth, although the cost of capital will remain a constraint,” the report said.
“Despite the negative economic impact from the pandemic, the Economist Intelligence Unit believes that it will be difficult for the NDC under Mr. Mahama to portray itself as the better custodian of Ghana’s economy. We, therefore, expect Mr. Akufo-Addo and the NPP to secure re-election,” the report said.
It further stated, “Following a marked weakening of the economy in 2020, reflecting a deteriorating current-account position and investor nervousness ahead of the elections, the pace of cedi depreciation will slow in 2021-24 as the hydrocarbons sector ramps up production and rise in prices” the EIU said, adding that after inflation increased to 11.3% in 2020, owing to currency weakness and pandemic-related disruption to supply chains, price rises will slow to an average of 8.8% in 2021-24.
The EIU however stated that the NDC can challenge the ruling government with its unfulfilled promises, noting that the elections will be a closely contested one.
Source: GhanaFeed.com