‘We are handing over a strong economy’ – Finance Minister
Finance Minister Dr Mohammed Amin Adam has affirmed that the New Patriotic Party (NPP) government is leaving behind a robust and resilient economy as it prepares to hand over power to the newly elected administration.
Speaking at a press briefing in Accra on Tuesday, December 17, 2024, Dr Amin Adam highlighted the economic gains made under the NPP administration, despite significant global and domestic challenges in recent years.
“We are handing over a strong economy,” he stated.
“The first four years of this administration saw impressive achievements, including the longest period of single-digit inflation, an average GDP growth rate of 7%, and strong external balances.
“Despite the challenges we faced between 2021 and 2022, the economy has rebounded strongly, exceeding expectations.”
Dr Amin Adam pointed to the country’s Gross International Reserves, now at $8 billion—equivalent to 3.5 months of import cover—as evidence of progress.
This figure, he noted, is a significant improvement from the $6.2 billion reserves inherited from the National Democratic Congress (NDC) in 2016.
He also highlighted growth rates in 2024, which he described as a return to pre-COVID levels.
“Growth rates of 4.8% in the first quarter, 7% in the second, and 7.2% in the third give us an average growth rate of 6.3%. This is far above the 3.4% average growth rate we inherited in 2016,” he said.
The Finance Minister cited private sector credit growth as another indicator of recovery, with nominal growth reaching 28.7% in October 2024 compared to a contraction of 7.5% in the same period in 2023.
In real terms, credit to the private sector grew by 5.5% in October 2024, reversing a 31.6% contraction from the previous year.
Dr Amin Adam emphasized Ghana’s trade surplus of $3.85 billion and a current account surplus of 2.6% of GDP for the first nine months of 2024.
These numbers, he noted, were a stark improvement from the deficits recorded in 2016, which included a trade balance deficit of $1.8 billion and a current account deficit of 6.6% of GDP.
Inflation, another critical measure, had fallen to 23% in November 2024 from a high of 54% in December 2022.
“While inflation remains elevated, the policies we implemented have stabilized prices and eased hardships for Ghanaians,” he stated.
Addressing concerns about Ghana’s debt levels, Dr Amin Adam outlined steps taken to reduce the public debt stock.
He revealed that 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 brought the debt-to-GDP ratio down from 79.2% to 74.6%, with further plans to reduce it to 55% in net present value terms.
“We have made significant progress in ensuring long-term debt sustainability,” he added.
Dr Amin Adam dismissed allegations that the country is broke, describing such claims as “propaganda.” He stressed that Ghana’s economic fundamentals are far stronger now than when the NPP assumed office in 2016.
“Our hope is that the incoming administration will continue with the policies we have put in place to sustain this recovery and meet Ghana’s debt sustainability targets,” he concluded.
