Finance Minister Dr. Mohammed Amin Adams expressed confidence in Ghana’s economic state as the New Patriotic Party (NPP) government prepares to hand over to the newly elected administration of John Dramani Mahama.
Speaking to journalists in Accra on Tuesday, December 17, 2024, Dr. Amin Adam highlighted that, despite facing global and domestic challenges, the economy has demonstrated significant recovery and resilience.
“We are handing over a strong economy,” Dr. Amin Adam affirmed. “The first four years of this administration saw impressive performance, including the longest period of single-digit inflation, an average GDP growth rate of 7%, and robust external balances. Despite challenges between 2021 and 2022, the economy has rebounded more strongly and quickly than expected.”
Dr. Amin Adam pointed out key achievements, such as Ghana’s Gross International Reserves, which stand at $8 billion—equivalent to 3.5 months of import cover. This is higher than the $6.2 billion in reserves left by the NDC in 2016. He also noted that the economy’s growth trajectory has returned to pre-COVID levels.
“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 stated.
Dr. Amin Adam also emphasized the recovery in private sector credit growth, which reached 28.7% in October 2024, a sharp reversal from the 7.5% contraction in the same period the previous year. “In real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year,” he 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 represent significant improvements from the deficits we faced in 2016, including a trade balance deficit of $1.8 billion and a current account deficit of 6.6% of GDP,” he noted.
Acknowledging ongoing inflation challenges, Dr. Amin Adam pointed out that headline inflation had reduced to 23% in November 2024 from 54% in December 2022. “Inflation is still high, but the measures we’ve implemented have helped stabilize prices and ease the hardship for Ghanaians,” he assured.
Regarding the country’s debt levels, Dr. Amin Adam reported progress in reducing the public debt stock. “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.
Dr. Amin Adam rejected claims that the country is financially distressed, calling them “propaganda.” He insisted that Ghana’s economic fundamentals are stronger than when the NPP assumed power in 2016. “We hope the incoming government will continue with the policies we’ve put in place to sustain this recovery and ensure Ghana meets its debt sustainability targets,” he concluded.
