NPP vs. NDC (2001-2016): Current Accounts Deficits

anangtawiah-com-ghana-npp-ndc-current-account

 

What is this metric/indicator about?

 

  • The current account is an important indicator about an economy’s health. It is defined as the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfers. [1]

 

Why is it important?

 

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How do we evaluate the performance of each party in the last 16years, using this indicator?

 

  1. Average: This KPI in the infograph was calculated by simply dividing the cumulative or the total output over an eight-year period (which in this case is equivalent to two presidential terms) by the number of years (which in this case happens to be eight years or two presidential terms).
  2. Total: Pretty much self-explanatory.  This KPI in the infograph was calculated by simply adding all the output accumulated over 8years.
  3. Max: This KPI in the infograph is simply the highest value in the range (which in this case is 8 years).
  4. Min: This KPI in the infograph is simply the lowest value in the range (which in this case is 8 years).
  5. Trend/bottom-line: This KPI in the infograph informs our judgement in terms of where this indicator is headed based on how our current administration is managing it.  It is denoted by the red dotted line.  And most importantly, the summary conclusions that we can draw from all the KPI’s.

 

Conclusion(s)

 

Based on the IMF data, Ghana government went through an expansionary phase.  It increased from a total current account deficit of -9.6 to -27.6billion dollars.  That is certainly not an achievement that the Mahama government can be proud of and I hope that, the candidate that wins today will work to resolve this gross fiscal and underlying structural imbalance.

 

Reference(s)

 

 

 

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About Anang Tawiah

About the author :: Anang Tawiah is a New York City based Management Consultant specializing in Investment Risk and Technology Strategy. He continues to guide many Blue chip companies and Governments as a Business and Technology Consultant. Please direct all follow up questions, concerns, request for speaking engagements and presentations regarding my articles and research to my Facebook Page listed below. You can read more of his analysis or reach him for further professional consultations and or guidance at: // Email: anang@labaddi.com // Follow me on Wordpress: www.anangtawiah.com // Follow me on Facebook: www.facebook.com/AnangTawiah

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