Ghana's Economic Recovery is on Track, We are Handing over a Strong Economy - Finance Minister
Ghana's Finance Minister, Dr. Mohammed Amin Adam, has expressed confidence in the state of the economy as the New Patriotic Party (NPP) government prepares to hand over power to the incoming administration of John Dramani Mahama.
Speaking to journalists in Accra, Dr. Amin Adam highlighted the economy's significant recovery and resilience in the face of global and domestic challenges. He pointed to the country's Gross International Reserves, which currently stand at $8 billion, equivalent to 3.5 months of import cover.
The minister also noted that the economy's growth trajectory has returned to pre-COVID levels, with growth rates in 2024 averaging 6.3%. This, he said, is significantly higher than the 3.4% average growth rate inherited in 2016.
Dr. Amin Adam acknowledged challenges with inflation, but noted that headline inflation had reduced to 23% in November 2024 from a high of 54% in December 2022.
On Ghana's debt levels, the minister said the government had made strides in reducing the public debt stock. He dismissed claims that the country is broke, describing them as "propaganda."
“We are handing over a strong economy,” Dr. Amin Adam declared. “The first four years of this administration were marked by impressive performance, with the longest period of single-digit inflation, an average GDP growth rate of 7%, and strong external balances. Even though we faced challenges between 2021 and 2022, the economy has recovered strongly and faster than many anticipated.”
“The growth rates in 2024—4.8% in the first quarter, 7% in the second, and 7.2% in the third reflect an average of 6.3%. This is significantly higher than the 3.4% average growth rate we inherited in 2016,” he noted.
“In real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year,” Dr. Amin Adam explained.
“Inflation is still high, but the measures we implemented have significantly stabilized prices and eased the hardship Ghanaians faced,” he assured.
“The total public debt decreased by GH₵46.8 billion from GH₵807.79 billion in September 2024 to GH₵761.01 billion in October 2024. This reduction brought the debt-to-GDP ratio down from 79.2% to 74.6%, and we are on track to reduce it further to 55% in net present value terms, ensuring long-term debt sustainability,” he explained.
“We hope the incoming government will continue with the policies we have implemented to sustain this recovery and ensure that Ghana’s debt sustainability targets are met,” he concluded.
Source: Lead News Online
