The Finance Minister, Dr. Mohammed Amin Adam, has expressed optimism about the state of Ghana’s economy as the New Patriotic Party (NPP) government prepares to hand over to the newly elected administration led by John Dramani Mahama.
Speaking to journalists in Accra on Tuesday, December 17, 2024, Dr. Amin Adam described the economy as strong and resilient, highlighting its recovery despite facing both domestic and global economic challenges over the past few years.
“We are leaving behind a robust economy,” Dr. Amin Adam asserted. “In the first four years of this administration, we achieved remarkable results, including the longest period of single-digit inflation, an average GDP growth rate of 7%, and solid external financial balances. Although we encountered difficulties between 2021 and 2022, the economy has rebounded far more strongly than anticipated.”
The Finance Minister underscored key achievements, including Ghana’s Gross International Reserves, which currently stand at $8 billion, providing 3.5 months of import cover. He compared this to the $6.2 billion in reserves left by the National Democratic Congress (NDC) in 2016, emphasizing the economy’s return to pre-pandemic growth levels.
Dr. Amin Adam highlighted the consistent growth seen in 2024, noting, “Growth rates of 4.8% in the first quarter, 7% in the second, and 7.2% in the third quarter represent an average of 6.3%. This is a significant improvement over the 3.4% average growth rate we inherited in 2016.”
He further pointed to the private sector’s role in the recovery, citing a dramatic turnaround in credit growth. “Private sector credit grew nominally by 28.7% in October 2024, a stark contrast to the 7.5% contraction recorded during the same period in 2023. In real terms, credit expanded by 5.5% compared to last year’s contraction of 31.6%,” he explained.
On external performance, Dr. Amin Adam highlighted a trade balance surplus of $3.85 billion and a current account surplus of 2.6% of GDP in the first nine months of 2024. “This is a major improvement over the deficits in 2016, when we recorded a trade balance deficit of $1.8 billion and a current account deficit of 6.6% of GDP,” he added.
Touching on inflation, he acknowledged the challenges but stressed the progress made. “Inflation has fallen to 23% in November 2024, down from a peak of 54% in December 2022. While inflation remains high, our measures have stabilized prices significantly, easing the economic strain on Ghanaians.”
Dr. Amin Adam also provided updates on Ghana’s public debt, stating that substantial progress had been made in reducing the debt burden. “Public debt fell by GH₵46.8 billion, dropping from GH₵807.79 billion in September 2024 to GH₵761.01 billion in October 2024. This has lowered the debt-to-GDP ratio from 79.2% to 74.6%, and we are on course to reduce it further to 55% in net present value terms for long-term sustainability.”
He rejected suggestions that the country was financially distressed, describing such claims as “mere propaganda.” According to him, Ghana’s economic fundamentals are now stronger compared to the situation in 2016 when the NPP assumed office.
“We hope the next administration will continue implementing the policies we’ve put in place to maintain this recovery and meet the country’s debt sustainability targets,” Dr. Amin Adam concluded.
Source: MyABCLive.com, sourced from Citinewsroom.com
