Finance Minister Dr. Mohammed Amin Adam has expressed confidence in the economic legacy the New Patriotic Party (NPP) government is leaving as it prepares for the handover to the newly elected administration of John Dramani Mahama.
Speaking to journalists in Accra on December 17, 2024, Dr. Amin Adam outlined the government’s achievements in steering the economy through global and domestic challenges. He emphasised that despite setbacks, the economy is now in a far stronger position.
“We are handing over a strong economy,” Dr. Amin Adam declared. He highlighted several key milestones, including the longest period of single-digit inflation and an average GDP growth rate of 7% over the first four years of the administration.
While acknowledging challenges between 2021 and 2022, the Finance Minister pointed to a swift economic recovery, with growth in 2024 outpacing expectations. Notably, Ghana’s Gross International Reserves stand at $8 billion—more than the $6.2 billion left by the previous administration in 2016.
Growth rates in 2024 have been promising: 4.8% in the first quarter, 7% in the second, and 7.2% in the third quarter, averaging 6.3%. This contrasts with the 3.4% average growth rate inherited by the NPP government in 2016.
Dr. Amin Adam also highlighted a significant improvement in private sector credit, which grew by 28.7% in nominal terms in October 2024, recovering from a contraction in the previous year. On the external front, the country recorded 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—substantial improvements from the deficits seen in 2016.
Addressing concerns about inflation, Dr. Amin Adam noted that the rate had fallen to 23% in November 2024, down from a peak of 54% in December 2022, although he acknowledged that prices remain high.
On public debt, he outlined a reduction in Ghana’s total debt stock by GH₵46.8 billion, from GH₵807.79 billion in September 2024 to GH₵761.01 billion in October 2024, lowering the debt-to-GDP ratio to 74.6%.
In dismissing claims that the country is broke, Dr. Amin Adam rejected such assertions as “propaganda,” affirming that Ghana’s economic fundamentals are stronger than when the NPP government took office in 2016.
He concluded by urging the incoming government to continue with the current economic policies to sustain the recovery and meet long-term debt sustainability goals.
Source:TheDotNews