We are handing over strong economy — Finance Minister

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 President-elect John Dramani Mahama. 

Speaking at a media briefing in Accra yesterday, Dr Amin Adam stated that Ghana’s economy had returned to a path of growth and stability despite the challenges of recent years.  

“The economy has recovered strongly and faster than many anticipated,” he stated, adding that, “We are handing over a strong economy.”  

Dr Amin Adam cited steady improvements in Gross Domestic Product (GDP) growth as evidence of the recovery.

“The growth rates in 2024 — 4.8 per cent in the first quarter, 7 per cent in the second, and 7.2 per cent in the third — reflect an average of 6.3 per cent. This is significantly higher than the 3.4 per cent average growth rate we inherited in 2016,” he explained.
 

Gains

Highlighting Ghana’s external strength, the Finance Minister reported a trade balance surplus of US$3.85 billion and a current account surplus of 2.6 per cent 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 US$1.8 billion and a current account deficit of 6.6 per cent of GDP,” he said.  

On the country’s reserves, Dr Amin Adam revealed that Ghana’s Gross International Reserves currently stood at US$8 billion, equivalent to 3.5 months of import cover, a notable increase compared to the US$6.2 billion reserves inherited in 2016.  

Touching on inflation, he acknowledged the lingering pressures but assured the public of progress.

“Headline inflation had reduced to 23 per cent in November 2024 from a high of 54 per cent in December 2022.

“Inflation is still high, but the measures we implemented have significantly stabilised prices and eased the hardship Ghanaians faced,” he said.  

The Finance Minister also observed significant gains in private sector credit, describing it as a strong signal of economic confidence.

“Nominal growth reached 28.7 per cent in October 2024, a sharp turnaround from the contraction of 7.5 per cent recorded in the same period in 2023. In real terms, private sector credit grew by 5.5 per cent in October this year, compared to a contraction of 31.6 per cent last year,” he added.  

Public debt stock

Addressing concerns about Ghana’s debt, Dr Amin Adam stated that the government had made strides in reducing the public debt stock as well.

“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 per cent to 74.6 per cent, and we are on track to reduce it further to 55 per cent in net present value terms,” he explained.  

While dismissing claims that Ghana’s economy is in distress as mere “propaganda,” Dr Amin Adam urged the incoming administration to build on the policies implemented by the NPP government.  

“We hope the incoming government will continue with the policies we have implemented to sustain this recovery and ensure that Ghana’s debt sustainability targets are met,” he said.  

Dr Amin Adam’s address comes at a critical moment as the NPP prepares to transition power to the incoming National Democratic Congress (NDC) government led by President-elect John Dramani Mahama.