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Finance Minister, Dr. Mohammed Amin Adam, has expressed confidence in the economy the New Patriotic Party (NPP) government is leaving behind as it prepares to hand over to the newly elected administration of John Dramani Mahama.
Addressing journalists in Accra on Tuesday, December 17, 2024, Dr. Amin Adam emphasized that the current state of Ghana’s economy reflects significant recovery and resilience despite global and domestic challenges in recent years.
“We are handing over a strong economy,” Dr. Amin Adam declared. “The first four years of this administration were marked by impressive performance, with the longest period of single-digit inflation, an average GDP growth rate of 7%, and strong external balances. Even though we faced challenges between 2021 and 2022, the economy has recovered strongly and faster than many anticipated.”
Dr. Amin Adam highlighted key achievements, pointing to Ghana’s Gross International Reserves, which currently stand at $8 billion, equivalent to 3.5 months of import cover. He said this is more than the $6.2 billion of reserves handed over to us by the NDC in 2016 adding that the economy’s growth trajectory has returned to pre-COVID levels.
“The growth rates in 2024—4.8% in the first quarter, 7% in the second, and 7.2% in the third reflect an average of 6.3%. This is significantly higher than the 3.4% average growth rate we inherited in 2016,” he noted.
He said the private sector credit growth also showcased the recovery, with nominal growth reaching 28.7% in October 2024, a sharp turnaround from the contraction of 7.5% recorded in the same period in 2023. “In real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year,” Dr. Amin Adam explained.
On the external front, the Finance Minister highlighted 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 are significant improvements from the deficits we saw in 2016, including a trade balance deficit of $1.8 billion and a current account deficit of 6.6% of GDP,” he stated.
Acknowledging challenges with inflation, Dr. Amin Adam noted that headline inflation had reduced to 23% in November 2024 from a high of 54% in December 2022. “Inflation is still high, but the measures we implemented have significantly stabilized prices and eased the hardship Ghanaians faced,” he assured.
Regarding Ghana’s debt levels, Dr. Amin Adam said the government had made strides in reducing the public debt stock. “The total public debt decreased by GH₵46.8 billion from GH₵807.79 billion in September 2024 to GH₵761.01 billion in October 2024. This reduction brought the debt-to-GDP ratio down from 79.2% to 74.6%, and we are on track to reduce it further to 55% in net present value terms, ensuring long-term debt sustainability,” he explained.
Dr. Amin Adam dismissed claims that the country is broke, describing them as “propaganda.” He maintained that Ghana’s economic fundamentals are stronger than when the NPP took over in 2016. “We hope the incoming government will continue with the policies we have implemented to sustain this recovery and ensure that Ghana’s debt sustainability targets are met,” he concluded.
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