As the government of the New Patriotic Party (NPP) makes preparations to transfer over power to John Dramani Mahama’s newly elected administration, Finance Minister Dr. Mohammed Amin Adam has voiced confidence in the economy.
Speaking to reporters on Tuesday, December 17, 2024, in Accra, Dr. Amin Adam stressed that despite recent domestic and international difficulties, Ghana’s economy is showing signs of substantial recovery and resilience.
“We are handing over a strong economy, 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.” Dr. Amin Adam declared.
Dr. Amin Adam outlined significant accomplishments, citing Ghana’s $8 billion in gross international reserves, which is equal to 3.5 months’ worth of import cover.
He added that the economy’s development trajectory has recovered to pre-COVID levels and that this is more than the $6.2 billion in reserves that the NDC gave us in 2016.
“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 said.
According to him, the rebound was also evident in the expansion of private sector credit, which nominally increased by 28.7% in October 2024, a dramatic improvement over the 7.5% decrease seen during the same time in 2023.
Dr. Amin Adam clarified, “In real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year.”
The finance minister highlighted a current account surplus of 2.6% of GDP and a trade balance surplus of $3.85 billion for the first nine months of 2024.
He said, “These are significant improvements from the deficits we saw in 2016, including a trade balance deficit of $1.8 billion and a current account deficit of 6.6% of GDP.”
Dr. Amin Adam acknowledged the difficulties with inflation, pointing out that headline inflation had dropped from a peak of 54% in December 2022 to 23% in November 2024.
“Inflation is still high, but the measures we implemented have significantly stabilized prices and eased the hardship Ghanaians faced,” he assured.
According to Dr. Amin Adam, the government of Ghana has made progress in lowering the amount of public debt.
He also said, “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.”
Claims that the nation is broke were rejected by Dr. Amin Adam, who called them “propaganda.”
He insisted that compared to when the NPP assumed power in 2016, Ghana’s economic foundation is stronger.
“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: newsthemegh.com