By Ashiadey Dotse
Finance Minister Dr. Mohammed Amin Adam has expressed confidence in Ghana’s economic strength as the New Patriotic Party (NPP) prepares to hand over to the incoming administration led by President-elect John Dramani Mahama.
Speaking to journalists in Accra on Tuesday, December 17, 2024, Dr. Amin Adam said the economy has shown resilience and recovery despite facing global and domestic challenges over recent years.
“We are handing over a strong economy,” he said. “The first four years of this administration achieved notable successes, including the longest period of single-digit inflation, an average GDP growth rate of 7%, and strong external balances. Despite challenges between 2021 and 2022, the economy has rebounded faster than expected.”
Dr. Amin Adam highlighted key achievements, including Ghana’s Gross International Reserves, which now stand at $8 billion, covering 3.5 months of imports. He compared this to the $6.2 billion left by the previous government in 2016.
He also pointed to strong growth rates in 2024: 4.8% in the first quarter, 7% in the second, and 7.2% in the third, averaging 6.3% for the year. “This is much higher than the 3.4% average growth we inherited in 2016,” he noted.
Private sector credit growth was another sign of 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 last 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 trade, 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 results, he said, are a significant improvement over 2016’s deficits.
Regarding inflation, Dr. Amin Adam said it had reduced to 23% in November 2024, down from a peak of 54% in December 2022. He acknowledged the hardship caused by inflation but assured Ghanaians that measures had stabilized prices.
On Ghana’s debt, Dr. Amin Adam announced a reduction in the public debt stock by GH₵46.8 billion in October 2024, bringing it down to GH₵761.01 billion. He said this reduced 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 the country is financially struggling, calling such statements “propaganda.” He emphasized that Ghana’s economic fundamentals are stronger now than in 2016. “We hope the incoming government will continue the policies we implemented to sustain recovery and ensure debt sustainability,” he concluded.
