A strong economy awaits our successor despite challenges faced – Finance Minister
Phoebe Martekie Doku, Today at 11:37 AM
The Finance Minister, Dr. Mohammed Amin Adam, has emphasized that the New Patriotic Party (NPP) is handing over a robust economy as it prepares for the change in government.
During a press conference in Accra on Tuesday, December 17, 2024, Dr. Amin Adam discussed the significant economic strides made under the current administration, noting that these achievements were realized despite various global and domestic hurdles.
“We are handing over a strong economy,” he stated.
“The first four years of this administration saw impressive achievements, including the longest period of single-digit inflation, an average GDP growth rate of 7%, and strong external balances.
“Despite the challenges we faced between 2021 and 2022, the economy has rebounded strongly, exceeding expectations.”
Dr. Amin Adam emphasized that Ghana’s Gross International Reserves have reached $8 billion, covering 3.5 months of imports, which he sees as a sign of economic advancement.
He compared this to the $6.2 billion reserves the country had when the NDC left power in 2016, highlighting the improvement over the years.
Additionally, he pointed to the growth rates observed in 2024, indicating a strong recovery and return to pre-COVID economic performance.
“Growth rates of 4.8% in the first quarter, 7% in the second, and 7.2% in the third give us an average growth rate of 6.3%. This is far above the 3.4% average growth rate we inherited in 2016,” he said.
The Finance Minister, Dr. Amin Adam, emphasized the notable improvement in private sector credit growth, which surged by 28.7% in October 2024, a sharp contrast to a decline of 7.5% in the same month of the previous year. Real credit growth also saw a positive shift, rising by 5.5% in October 2024, reversing the 31.6% decline from 2023.
He highlighted Ghana’s trade surplus of $3.85 billion and a current account surplus at 2.6% of GDP for the first three quarters of 2024, signaling a major recovery from the deficits experienced in 2016, which included a $1.8 billion trade deficit and a current account deficit of 6.6% of GDP.
On inflation, Dr. Amin Adam reported a reduction to 23% in November 2024, a significant drop from the 54% high in December 2022.
“While inflation remains elevated, the policies we implemented have stabilized prices and eased hardships for Ghanaians,” he stated.
He acknowledged that while inflation is still elevated, the government’s interventions have stabilized prices and alleviated the financial burdens on citizens.
In terms of public debt, Dr. Amin Adam shared the government’s progress in reducing the national debt, revealing a reduction of GH¢46.8 billion, from GH¢807.79 billion in September 2024 to GH¢761.01 billion in October 2024.
This reduction has also improved the debt-to-GDP ratio, bringing it down from 79.2% to 74.6%, with further plans to decrease it to 55% in net present value terms.
“We have made significant progress in ensuring long-term debt sustainability,” he added.
Dr. Amin Adam rejected the notion that Ghana is facing a financial crisis, calling those claims “propaganda.”
He highlighted that the country’s economic fundamentals have significantly strengthened since the NPP government took over in 2016.
“Our hope is that the incoming administration will continue with the policies we have put in place to sustain this recovery and meet Ghana’s debt sustainability targets,” he concluded.