FACTCHECK: Verifying Dr Mahamudu Bawumia's Address On Economy

Vice President, Dr. Mahamudu Bawumia delivers an address at a TESCON event

To improve debate, dialogue and hold politicians accountable, Ghana's leading news portal - GhanaWeb, and GhanaFact, an IFCN verified fact-checking project, are collaborating to fact-check claims being made by Vice President Mahamudu Bawumia during his address on the economy. 

The West African nation has seen a surge in the prices of petroleum products at the pumps amidst increases in the cost of consumables and non-consumables on the market – while the local currency, Ghana Cedi has come under enormous pressure from the dollar and other foreign currencies – depreciating in value considerably in the last couple of months.

Vice President Mahamudu Bawumia who is the head of the government's Economic Management Team is addressing Ghanaians to share perspectives on how the economy has been managed so far.

Dr Bawumia when delivering a presentation on the state of the economy said in the first quarter of 2022, Ghana's sovereign bonds have been downgraded by two rating agencies.

We bring some facts from the claims made so far.

DR. BAWUMIA: “In the first quarter of this year, we've also suffered a sovereign credit ratings downgrade by two rating agencies (Fitch&Moodys)…”

Verdict

CHECKED: TRUE (www.moodys.com/research/Moodys-downgrades-Ghanas-rating-to-Caa1-outlook-stable--PR_461698?&stop_mobi=yes" target="_blank", https://www.fitchratings.com/research/banks/fitch-downgrades-gtb-ghana-to-b-on-sovereign-downgrade-outlook-stable-18-01-2022/dodd-frank-disclosure

DR. BAWUMIA: “Food prices have also not been left out. The FAO Global Food Price Index increased from 95.1 at the end of 2019 to 140.7 in February 2022…”

CHECKED: TRUE (here)

DR. BAWUMIA: “The increase in commodity prices has been exacerbated by the Russia- Ukraine conflict. Russia and Ukraine together account for 30% of global wheat exports…”

CHECKED: TRUE (here)

DR. BAWUMIA: “Inflation had declined from an average of 17.5% in 2016 to an average of 7.2% in 2020.”

CHECKED: Partly True (In 2020, average Inflation was 9.88%)

DR. BAWUMIA: “Since the pandemic, inflation has increased to an average of 10% in 2021.”

.www.ghanaweb.com