Finance Minister Dr. Mohammed Amin Adam has expressed strong confidence in Ghana’s economic resilience as the New Patriotic Party (NPP) prepares to hand over to the incoming administration of President-elect John Dramani Mahama.
Speaking with journalists in Accra on Tuesday, December 17, 2024, Dr. Amin Adam emphasized that despite facing both global and domestic challenges, the economy has shown remarkable resilience and recovery.
“We are handing over a robust economy,” he stated. “During the first four years of this administration, we achieved significant milestones, including the longest period of single-digit inflation, an average GDP growth rate of 7%, and robust external balances. Despite setbacks between 2021 and 2022, the economy has recovered more quickly than anticipated.”
Dr. Amin Adam highlighted several key achievements, including Ghana’s Gross International Reserves, which have now reached $8 billion, enough to cover 3.5 months of imports. This is a notable increase from the $6.2 billion reserves left by the previous government in 2016.
He also pointed to strong growth in 2024, with a 4.8% growth in the first quarter, 7% in the second quarter, and 7.2% in the third quarter, averaging 6.3% for the year. “This is significantly higher than the 3.4% average growth we inherited in 2016,” he remarked.
The growth in private sector credit was another indicator of economic recovery. According to Dr. Amin Adam, credit grew by 28.7% in October 2024, compared to a contraction of 7.5% in the same period the previous year. “In real terms, credit to the private sector grew by 5.5% in October, reversing a 31.6% contraction last year,” he added.
On the trade front, Dr. Amin Adam reported a trade surplus of $3.85 billion and a current account surplus of 2.6% of GDP for the first nine months of 2024. These figures represent a significant improvement over the deficits reported in 2016.
Regarding inflation, Dr. Amin Adam noted that it had decreased to 23% in November 2024, down from a peak of 54% in December 2022. He acknowledged the hardships caused by inflation but reassured Ghanaians that measures had been put in place to stabilize prices.
On the issue of Ghana’s debt, Dr. Amin Adam revealed that the public debt stock had been reduced by GH₵46.8 billion in October 2024, bringing it to GH₵761.01 billion. This reduction lowered the debt-to-GDP ratio from 79.2% to 74.6%, with plans to further reduce it to 55% in the future.
Dr. Amin Adam dismissed claims that Ghana is in financial distress, labeling such statements as “propaganda.” He stressed that the country’s economic fundamentals are stronger now than in 2016. “We hope the incoming government will continue the policies we’ve implemented to sustain recovery and ensure debt sustainability,” he concluded.
