We are handing over a strong economy – Finance Minister

Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has assured the public that the New Patriotic Party (NPP) is leaving behind a resilient and improving economy as it prepares to transition power to the incoming John Dramani Mahama administration. Speaking to journalists in Accra on December 17, 2024, Dr. Amin Adam emphasized key economic achievements while addressing concerns about challenges faced in recent years.
Economic Recovery and Growth
Dr. Amin Adam highlighted the robust economic recovery in 2024:
- GDP Growth: Ghana recorded an average GDP growth rate of 6.3%, with 7.2% growth in the third quarter. This compares favorably to the 3.4% growth inherited from the previous administration in 2016.
- Inflation: Headline inflation reduced significantly to 23% in November 2024, down from a peak of 54% in December 2022.
External Reserves and Trade Surplus
The Finance Minister underscored Ghana’s improved external position:
- Gross International Reserves: Reserves now stand at $8 billion, equivalent to 3.5 months of import cover. This is a marked increase from the $6.2 billion recorded in 2016.
- Trade and Current Account Surplus: The economy recorded a trade surplus of $3.85 billion and a current account surplus of 2.6% of GDP in the first nine months of 2024.
This is in contrast to 2016, when the trade balance showed a $1.8 billion deficit, and the current account recorded a 6.6% deficit of GDP.
Debt Management and Private Sector Growth
On Ghana’s public debt, Dr. Amin Adam reported a significant reduction:
- The public debt stock decreased by GH₵46.8 billion, lowering the debt-to-GDP ratio from 79.2% to 74.6%. He assured that debt sustainability remains on track, with the ratio targeted to reach 55% in net present value terms.
- Private Sector Credit: Credit growth rebounded sharply, with nominal growth reaching 28.7% in October 2024, compared to a contraction of 7.5% the previous year.
Strong Economic Fundamentals
Dr. Amin Adam dismissed claims of a “broke” economy as political propaganda, asserting that Ghana’s economic fundamentals are stronger than they were in 2016. He called on the incoming government to maintain policies that ensure long-term economic stability and debt sustainability.
While acknowledging challenges, Dr. Amin Adam expressed optimism about the progress made under the NPP, urging continuity in policies to sustain the country’s economic gains. As Ghana prepares for a political transition, the economy’s performance will remain a key focal point for both the outgoing and incoming administrations.