Finance Minister, Dr. Mohammed Amin Adam, has assured Ghanaians of a robust and recovering economy as the New Patriotic Party (NPP) government prepares to transition power to the incoming administration of John Dramani Mahama.
Speaking at a press conference in Accra, Dr. Amin Adam emphasized the strides made in stabilizing and rebuilding the economy despite facing significant domestic and global challenges.
A strong economy handed over
Dr. Amin Adam expressed confidence in the economic foundation being left behind.
“We are handing over a strong economy,” he declared.
He pointed to the NPP government’s first four years in office as a period of impressive economic performance, characterized by the longest stretch of single-digit inflation, an average GDP growth rate of 7%, and stable external balances.
Setbacks from 2021
He acknowledged setbacks experienced between 2021 and 2022 but noted that the recovery had surpassed expectations. “The economy has recovered strongly and faster than many anticipated,” he stated.
$8bn gross international reserves
The Finance Minister highlighted Ghana’s Gross International Reserves, now standing at $8 billion, equivalent to 3.5 months of import cover.
This, he said, was a marked improvement over the $6.2 billion in reserves inherited in 2016.
Quarterly growth rates rises to 7.2%
Economic growth, according to Dr. Amin Adam, has returned to pre-COVID levels, with quarterly growth rates of 4.8% in the first quarter of 2024, 7% in the second, and 7.2% in the third.
The average growth rate of 6.3% for 2024 significantly outperformed the 3.4% average inherited in 2016.
Private sector and trade recovery
Private sector credit growth has also rebounded, with nominal growth reaching 28.7% in October 2024, compared to a contraction of 7.5% during the same period in 2023.
Real growth in private sector credit rose by 5.5%, a stark contrast to the 31.6% contraction recorded last year.
$3.85bn trade surplus
On the external front, Dr. Amin Adam noted 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, he said, were significant improvements from the trade balance deficit of $1.8 billion and current account deficit of 6.6% of GDP recorded in 2016.
Inflation and debt sustainability
Inflation, though still a concern, has significantly improved. Headline inflation dropped to 23% in November 2024, a sharp decline from the 54% peak recorded in December 2022.
“The measures we implemented have stabilized prices and eased hardships,” Dr. Amin Adam assured.
GH₵46.8bn drop in debt stock
On debt levels, he announced a reduction in Ghana’s public debt stock by GH₵46.8 billion, from GH₵807.79 billion in September 2024 to GH₵761.01 billion in October 2024.
This reduced the debt-to-GDP ratio from 79.2% to 74.6%.
He projected further reductions, targeting a debt-to-GDP ratio of 55% in net present value terms to ensure long-term sustainability.
Addressing criticism and looking ahead
Responding to claims that Ghana is financially insolvent, Dr. Amin Adam dismissed such assertions as “propaganda,” maintaining that the country’s economic fundamentals are stronger now than when the NPP took office in 2016.
He expressed hope that the incoming government would continue the policies implemented under the NPP to sustain economic recovery and meet debt sustainability targets.
“We have laid the groundwork for long-term growth and stability. It is our hope that these gains will be built upon,” he concluded.
