Economy with over $8 billion Gross International reserves not broke

By Newscenta On Jan 3, 2025

President Nana Addo Dankwa Akufo-Addo assured Ghanaians that the economy remains robust, with over $8 billion in Gross International Reserves, as he delivered his final State of the Nation Address to Parliament on January 3, 2025.

Economic growth returns to Pre-COVID levels
The President highlighted that Ghana’s economic growth trajectory had rebounded to pre-COVID-19 levels, reaching 4.8% in Q1 2024, 7% in Q2, and 7.2% in Q3. He emphasized that these figures reflect economic resilience and a vibrant recovery from global economic pressures.
He noted improvements in private sector credit growth, which rose by 28.87% in nominal terms in October 2024, compared to a contraction of -7.5% in 2023. Real credit growth also shifted positively to 5.5%, reversing a 31.6% contraction in October 2023.

Trade balance and external reserves
President Akufo-Addo highlighted the improvement in external balances, recording a 2.6% GDP surplus in the first nine months of 2024, compared to a 6.6% GDP deficit in 2016. Ghana’s trade balance now stands at a surplus of $3.85 billion, a significant turnaround from the $1.8 billion deficit in 2016.

Inflation and cost of living
Inflation rates dropped to 23% in November 2024, down from a peak of 54% in December 2022.
This decline, coupled with reduced food prices, has brought relief to households and eased the overall cost of living.

Social interventions amid challenges
To mitigate economic hardships, the government increased budget allocations for critical social programs, including:

School Feeding Programme
Capitation Grant
National Health Insurance Scheme (NHIS)
Livelihood Empowerment Against Poverty (LEAP)
Commitment to IMF-Backed Reforms
The President reaffirmed the government’s commitment to structural reforms and objectives under the ongoing International Monetary Fund (IMF) loan-supported program.
“We are handing over a country with solid reserves and sustainable growth indicators, contrary to claims of economic distress,” President Akufo-Addo concluded.