We are handing over a strong economy – Finance Minister

As Ghana’s political transition nears with the New Patriotic Party (NPP) preparing to hand over to the newly elected administration of John Dramani Mahama, Finance Minister Dr. Mohammed Amin Adam has expressed confidence in the nation’s economic stability and recovery.

Speaking to the press in Accra on Tuesday, December 17, 2024, Dr. Amin Adam praised the resilience of Ghana’s economy, highlighting its recovery despite global and domestic economic challenges.

“We are leaving behind a robust economy,” Dr. Amin Adam declared. He reflected on the accomplishments of the current administration, noting that the first four years were marked by significant milestones, including single-digit inflation, an average GDP growth rate of 7%, and solid external balances. Despite difficulties faced between 2021 and 2022, the economy has rebounded quicker than expected.

Dr. Amin Adam provided a detailed picture of Ghana’s economic progress, pointing out that the country’s Gross International Reserves now stand at $8 billion—the equivalent of 3.5 months of import cover, up from $6.2 billion in 2016.

He further highlighted the economic growth trajectory, with 2024 seeing an impressive 6.3% growth rate, recovering from 3.4% in 2016, before the COVID-19 pandemic disrupted global markets.

The finance minister also noted improvements in the private sector credit, which grew by 28.7% in nominal terms in October 2024, reversing the previous year’s contraction. He revealed that in real terms, private sector credit grew by 5.5%, contrasting sharply with a 31.6% contraction in 2023.

Turning to external economic performance, Dr. Amin Adam reported a trade balance surplus of $3.85 billion and a current account surplus of 2.6% of GDP for the first three quarters of 2024. These figures marked a stark turnaround from the trade deficit of $1.8 billion and the current account deficit of 6.6% of GDP in 2016.

Despite these gains, Dr. Amin Adam acknowledged the ongoing challenge of inflation, which had surged to a high of 54% in December 2022, but had since fallen to 23% by November 2024. He assured citizens that the government’s measures have helped stabilize prices and mitigate the hardships faced by the public.

Responding to claims that Ghana’s finances are in crisis, Dr. Amin Adam dismissed such accusations as “propaganda”, asserting that Ghana’s economic fundamentals are now stronger than they were in 2016.

He also urged the incoming administration to continue with the policies initiated by the NPP to sustain the recovery, maintain fiscal discipline, and work towards long-term debt sustainability.

In conclusion, Dr. Amin Adam expressed optimism about the country’s economic prospects and reassured the public that Ghana’s economy is on a stable path forward, ready to face the future with renewed confidence.