Dr. Mohammed Amin Adam, the Finance Minister, has voiced confidence in the economy as the New Patriotic Party (NPP) government prepares to transfer over power to John Dramani Mahama’s newly elected administration.
Speaking to reporters in Accra on Tuesday, December 17, 2024, Dr. Amin Adam stressed that despite recent domestic and international difficulties, Ghana’s economy is showing signs of substantial recovery and resilience.
“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 outlined significant accomplishments, citing Ghana’s $8 billion in gross international reserves, which is equal to 3.5 months’ worth of import cover. He added that the economy’s development trajectory has recovered to pre-COVID levels and that this is more than the $6.2 billion in reserves that the NDC gave us in 2016.
“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.
According to him, the rebound was also evident in the expansion of private sector credit, which nominally increased by 28.7% in October 2024—a dramatic improvement over the 7.5% decrease seen during the same time in 2023. Dr. Amin Adam clarified, “Private sector credit expanded by 5.5% in real terms in October of this year, as opposed to a contraction of 31.6% last year.”
The finance minister highlighted a current account surplus of 2.6% of GDP and a trade balance surplus of $3.85 billion 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.
Source:Mybrytfmonline.com/Joseph Asare
