achievements in 2020 predicated on one expanded domestic revenue mobilisation, business regulatory reforms, intensified drive for foreign direct investments, enhanced financial support to local enterprises, digitali- sation, accelerated infrastructural development especially roads, hospitals and educational facilities and science and technology. Then entered the COVID-19 pandemic.
Mr Speaker, it must be clear to all objective and neutral watchers that the management of the economy under President Akufo-Addo was in capable hands until the Coronavirus pandemic struck.
The well-structured programme got choked by the virus and Government had to review the plan of action that had been fashioned to take the country to the next level of accelerated economic development which the Hon Minister had themed “Consolidate the Gains for Growth, Jobs and Prosperity for all''.
On the sharp contrast to the NDC regime under former President Mahama, under President Akufo- Addo, the economy steadily grew as I have alluded to. Industry started reviving up again and Ghana and
Ghanaians were clearly on the road to prosperity. The effect of the pandemic as the Hon Minority Leader himself acknowledged, has been swift and extremely devastating on the people of the world with businesses and the world economy with 2.2 billion jobs having being lost.
Mr Speaker, the Hon Minister for Finance informed us that the pandemic is more than a health crisis. Restrictions were imposed on the movement of people to contain the spread and these restrictions disrupted households and businesses with very many job losses and reduced incomes for many people especially, those in the private and informal sectors.
This is what translated into the recession that we suffered as a country. Hotels and the hospitality industry are literally on their knees. As I said last year, Kempinski Hotel which was the flagship hotel in this country which employed 360 people, had to send 300 out of the 360 home. Only a skeletal staff of 60 remained. What do they expect? Many of the hotels that we know closed down and we do not expect that to translate into the economy? Certainly, if they did not do that then clearly, they do not understand economics.
Mr Speaker, the ECOWAS regions average annual GDP growth
rate in 2020 was -2.5. Ghana did not register a sub-zero growth rate. Ghana kept its head above waters. Only four countries in the sub-region did better as far as GDP growth rate is concerned than Ghana. Nigeria registered -4.3 per cent, Liberia registered -3.0 per cent, Sierra Leone registered -3.1 per cent, Gambia registered -1.8 per cent, Cape Verde registered -6.8 per cent, Togo flattened out with 0.0 per cent, Mali registered -2.0 per cent, Guinea Bissau registered -2.9 per cent, Burkina Faso registered -2.0 per cent and Senegal registered -0.7 per cent. The countries that did better than Ghana are; Cote d'Ivoire which registered 1.8 per cent, Guinea registered 1.4 per cent, Benin registered 2.0 per cent and Niger registered 0.5 per cent.
Mr Speaker, it is instructive to state that none of the countries that did better than Ghana, did what Ghana did to mitigate the effects of the virus on the economy and on the citizens. None of them gave out hot meals to the people - or at least, some of them uncooked food, providing free water and electricity. None of them did that. Providing business support as Ghana did - none of them did that. So, people should appreciate what the Government of this country did to save lives.
Mr Speaker, it is important to state that all these countries were churning out impressive GDP growth rates before the COVID-19 pandemic struck. Indeed, Ghana's economy grew by 6.5 per cent in 2019, Cote d'Ivoire grew by 6.5 per cent, Senegal grew by 5.3 per cent, Guinea grew by 5.6 per cent, Burkina Faso grew by 5.7 per cent, Benin grew by 6.9 per cent, Guinea Bissau grew by 4.5 per cent, Mali grew by 5.1 per cent, Niger grew by 5.9 per cent, Togo grew by 5.3 per cent, Cape Verde grew by 5.7 per cent, Gambia grew by 6.1 per cent, Sierra Leone grew by 5.4 per cent and Nigeria grew by 2.2 per cent.
Mr Speaker, Ghana was on a good and smooth trajectory until the COVID-19 pandemic struck. So, for the Hon Member of Banda, Mr Ahmed to say that Ghana's economy collapsed under the watch of the NPP, clearly, he did not place it in context. He is oblivious to the world situation and that cannot be good and helpful.
He could not have been oblivious - he knew what happened so he must put it in the context. If he said that we could have done better that is another argument all -- together but he said that our economic management was shambolic. Clearly, he was not truthful to the facts.
Mr Speaker, the former President John Mahama's Aadministration when
MR KYEI-MENSAH-BONSU] MR KYEI-MENSAH-BONSU]
there was no COVID-19 in 2014, grew the economy by just 2.9 per cent. In 2015 the economy was grown by 2.2 per cent, in 2016 it was grown by 3.4 per cent. This tells in vivid terms the extent of incompetence. The average growth rate in the sub-region between 2013, 2014, 2015 and 2016 was 5.2 per cent. So, when they registered 2.9, 2.2 and 3.4 per cent under their watch, they went beneath the radar and that was where we told them their economic management is characterised by sheer incompetence.
Mr Speaker, in the midst of the COVID-19 pandemic, Ghana was able to achieve four out of the six ECOWAS convergence criteria but under the Mills-Mahama Administration, the criteria were 10 and it was only in one year that they attained three out of the 10. In a particular year, they attained only one - in three years out of the eight, they attained only one. That is the mark of economic incompetence -- incompetence galore. [Hear! Hear!] [Laughter]
Mr Speaker, until the COVID-19 pandemic struck, this economy expanded under the Akufo-Addo Administration annually between 16 and 17 per cent. What it meant was that under such an environment, if one was able to grow the economy between 16 and 17 per cent, then the
revenue would certainly expand then the expenditure could also be increased. In 2020, the revenues contracted no thanks to the COVID- 19 pandemic but expenditures escalated. So, the denominator shrunk and the nominator expanded. That is the reason the debt stock has ballooned. They should understand this because it is basic economics. This is not contrivance and it is not propaganda. This is the reason the debt to GDP has increased.
Mr Speaker, notwithstanding, as the Hon Minister said it is important to explain that the debt stock now stands at 334.56 billion which represents 77.1 per cent of GDP and includes the financial and energy sector bailouts. Excluding the financial sector bailout alone, the debt to GDP ratio falls to 72.9 per cent. That is something that we had to do to strengthen and reposition the banking sector.
The good news is that the country has made steady progress in the macro economic targets that we set for the 2021 budget. In the overall GDP, we targeted to grow at 5.5 per cent, end of year inflation to be at 8 per cent, non-oil real GDP growth rate at 6.7 per cent, fiscal deficit at 9.5 per cent, primary deficit of 1.3 per cent, gross international reserves of not less than four months. At the end of the first quarter, GDP registered
3.1 per cent, non-oil GDP registered 4.6 per cent, agriculture registered 4.3 per cent, service registered 4.0 per cent and industry registered 1.3 per cent. We are climbing up by all accounts.
Mr Speaker, inflation declined further to 7.5 per cent from 10.9 per cent in December 2020. Interest rates are generally declining. At the end of June 2021, the country's gross international reserves had grown.
Mr Speaker, at the end of June 2021, the country's gross international reserve had grown astronomically to US$11.027 billion from the December 2020 position of US$8.624 billion. This provides us not with the targeted four months cover but five months of import cover. This US$11 billion in gross international reserve is unprecedented in the history of this country. You are dazed; it is not US$9 billion, US$11 billion of import cover.
Mr Speaker, Government is not shying away from responsibility of ensuring that the economy is repositioned in full recognition of the fact that COVID-19 is here to stay and hence, efforts must be made in the context to reinvigorate the economy.
The fiscal measures contained in the 2021 Budget, Mid-Year Review and the Ghana COVID-19 Alleviation and Revitalisation of Enterprises Support (Ghana CARES) or the Obaatanpa Programme constitutes the bedrock for repositioning this country.
The Hon Minister, from paragraph 151 through to 179 of the Mid-Year Review, gave a vivid description of what the phases 1 and 2 of the Ghana CARES Programme entails and the status of implementation. The protection of livelihoods, the revitalisation and transformation of the economy including the private sector in areas of fast track industrialisation, import substitution, digitalisation, export expansion and the creation of sustainable jobs, especially for the youth are all contained in the Mid-Year Budget Review. I would refer us to the paragraphs that I have quoted, in particular, paragraph 152.
The Hon Minister also updated the country on the status of some selected government interventions. Two weeks ago, the Hon Minister for Trade and Industry was in this House to inform us about the status of the 1D1F initiative. The Hon Minister for Finance came to confirm that a total number of 1D1F projects in operation as of now are 104. The number of industries under construction at the
MR KYEI-MENSAH-BONSU] [MR KYEI-MENSAH-BONSU]