Finance Minister, Dr. Mohammed Amin Adam, has expressed confidence in the economy being handed over by the New Patriotic Party (NPP) government to the incoming administration led by John Dramani Mahama.
Speaking to journalists in Accra on Tuesday, December 17, 2024, Dr. Amin Adam highlighted Ghana’s economic recovery and resilience despite recent global and domestic challenges.
“We are handing over a strong economy,” he stated, citing achievements such as single-digit inflation during the government’s first term, an average GDP growth rate of 7%, and improved external balances.
Dr. Amin Adam pointed out that Ghana’s Gross International Reserves currently stand at $8 billion, equivalent to 3.5 months of import cover, which exceeds the $6.2 billion reserves inherited in 2016.
He emphasized the economy’s strong growth trajectory, noting GDP growth rates of 4.8% in the first quarter, 7% in the second, and 7.2% in the third quarter of 2024—averaging 6.3%, significantly higher than the 3.4% recorded in 2016.
Highlighting private sector recovery, Dr. Amin Adam revealed that credit growth reached 28.7% in October 2024, a sharp reversal from the 7.5% contraction in 2023.
Real private sector credit also grew by 5.5% in October, compared to a contraction of 31.6% during the same period last year.
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.
