Finance Minister, Dr. Mohammed Amin Adam has expressed confidence in the state of Ghana’s economy as the New Patriotic Party (NPP) prepares to hand over to the newly elected administration of John Dramani Mahama.
Speaking to journalists in Accra on Tuesday, December 17, 2024, Dr. Amin Adam emphasized the resilience and recovery of Ghana’s economy despite recent global and domestic challenges.
“We are handing over a strong economy,” he stated.
“The first four years of this administration were marked by impressive achievements, including the longest period of single-digit inflation, an average GDP growth rate of 7%, and strong external balances. While challenges arose between 2021 and 2022, the economy has rebounded faster than anticipated.”
He highlighted several key economic indicators, noting that Ghana’s Gross International Reserves now stand at $8 billion—equivalent to 3.5 months of import cover—compared to $6.2 billion in 2016.
He also pointed out that the economy’s growth trajectory has returned to pre-COVID levels, with an average growth rate of 6.3% in 2024, significantly higher than the 3.4% recorded in 2016.
Dr. Amin Adam underscored the recovery in private sector credit, reporting a nominal growth of 28.7% in October 2024, up from a contraction of 7.5% in 2023.
“In real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year,” he explained.
On external performance, he highlighted a trade balance surplus of $3.85 billion and a current account surplus of 2.6% of GDP for the first nine months of 2024.
“These represent significant improvements from the deficits we inherited in 2016, including a trade balance deficit of $1.8 billion and a current account deficit of 6.6% of GDP,” he added.
Dr. Amin Adam acknowledged ongoing challenges with inflation, which dropped to 23% in November 2024 from a peak of 54% in December 2022.
He assured Ghanaians that measures implemented by the government had stabilized prices and eased hardships.
Dismissing claims that the country is broke as “propaganda,” Dr. Amin Adam asserted that Ghana’s economic fundamentals are stronger now than in 2016.
He urged the incoming government to continue the policies implemented by the NPP to sustain recovery and achieve long-term debt sustainability.
READ ALSO: