Finance Minister, Dr. Mohammed Amin Adam, has expressed confidence in the economy the New Patriotic Party (NPP) government is leaving behind as it prepares to hand over to the newly elected administration of John Dramani Mahama.
Addressing journalists in Accra on Tuesday, December 17, 2024, Dr Amin Adam emphasized that the current state of Ghana’s economy reflects significant recovery and resilience despite global and domestic challenges in recent years.
“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.”
Dr Amin Adam highlighted key achievements, pointing to Ghana’s Gross International Reserves, which currently stand at $8 billion, equivalent to 3.5 months of import cover. He said this is more than the $6.2 billion of reserves handed over to us by the NDC in 2016 adding that the economy’s growth trajectory has returned to pre-COVID levels.
“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.
He said the private sector credit growth also showcased the recovery, with nominal growth reaching 28.7% in October 2024, a sharp turnaround from the contraction of 7.5% recorded in the same period in 2023. “In real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year,” Dr. Amin Adam explained.
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.