Finance Minister Dr. Mohammed Amin Adam has expressed confidence in the state of Ghana’s economy as the New Patriotic Party (NPP) prepares to hand over power to President-elect John Dramani Mahama.
Speaking at a press briefing in Accra on Tuesday, December 17, 2024, Dr. Amin Adam emphasised that the outgoing administration leaves behind a resilient and recovering economy, despite significant challenges over the years.
“We are handing over a strong economy,” Dr. Amin Adam declared, citing key achievements of the NPP government. He highlighted the first term of the Akufo-Addo-led administration as a period of exceptional economic performance, marked by:
- Single-digit inflation over an extended period.
- An average GDP growth rate of 7%.
- Strong external balances, which positioned Ghana for steady development.
While the economy faced disruptions between 2021 and 2022 due to global and domestic pressures, he asserted that recovery was swift.
“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%, far exceeding the 3.4% average we inherited in 2016,” he noted.
The finance minister underscored Ghana’s gross international reserves, which stand at $8 billion, equivalent to 3.5 months of import cover. This, he said, was an improvement over the $6.2 billion in reserves handed to the NPP in 2016.
On trade, Dr. Amin Adam highlighted a $3.85 billion trade surplus and a current account surplus of 2.6% of GDP for the first nine months of 2024, in stark contrast to the trade deficit of $1.8 billion and a current account deficit of 6.6% of GDP recorded in 2016.
Dr. Amin Adam acknowledged inflationary pressures but noted significant progress in stabilising prices. Headline inflation, which peaked at 54% in December 2022, had reduced to 23% in November 2024.
On public debt, he pointed to a GH₵46.8 billion reduction, with the total public debt dropping 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%, with a target of 55% in net present value terms for long-term debt sustainability.
The minister also highlighted a recovery in private sector credit, with nominal growth hitting 28.7% in October 2024, compared to a contraction of 7.5% in the same period in 2023. Real private sector credit grew by 5.5% in October, a stark turnaround from a contraction of 31.6% the previous year.
Dr. Amin Adam dismissed assertions that Ghana is financially insolvent, labelling them as “propaganda.”
He urged the incoming administration to continue with the policies implemented by the NPP to sustain the recovery and ensure that Ghana meets its debt sustainability targets.
“We hope the incoming government will prioritise the economy and build on the foundation we have laid for a prosperous Ghana,” he concluded.
As the Mahama administration prepares to take over in January 2025, the NPP government leaves a mixed legacy of economic challenges and recovery efforts. Dr. Amin Adam’s assurances set the stage for heightened public scrutiny of the incoming government’s economic policies and their impact on Ghana’s development trajectory.