Finance Minister, Mr. Mohamed Amin Adam, has expressed confidence in the state of Ghana’s economy, which the New Patriotic Party (NPP) is handing over to the newly elected government.
In a press briefing on Tuesday, December 17, Dr. Amin Adam highlighted the significant recovery and resilience of the economy, despite facing global and domestic challenges in recent years.
Dr. Amin Adam pointed out that the reserves inherited from the National Democratic Congress (NDC) in 2016, which stood at 6.2 billion dollars, have increased to 8 billion dollars, now equivalent to 3.5 months of import cover.
He also highlighted the recovery in private sector credit, which grew by 5.5% in October 2024, compared to a 31.6% contraction in the previous year.
While acknowledging inflationary challenges, Dr. Amin Adam noted that headline inflation had decreased to 23% in November 2024, down from 54% in December 2022.
On Ghana’s debt levels, Dr. Amin Adam revealed that the government had made progress in reducing the public debt stock.
“We are handing over a strong economy,” Dr. Amin Adam declared. “The first four years of this administration were marked by impressive performance, with the longest period of single-digit inflation, an average GDP growth rate of 7%, and strong external balances. Even though we faced challenges between 2021 and 2022, the economy has recovered strongly and faster than many anticipated.”
“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.
“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%. This is significantly higher than the 3.4% average growth rate we inherited in 2016,” he noted.
Dr. Amin Adam dismissed claims that the country is broke, describing them as ‘propaganda’, stressing that Ghana’s economic fundamentals are stronger than when the NPP took office in 2016.
Source: Ghana/Starrfm.com.gh/103.5FM/Rita Nsiah
