Dr. Mohammed Amin Adam
As the Akufo-Addo administration prepares to hand over, the outgoing administration is boasting of a strong economy, citing significant improvements in key economic indicators.
According to Finance Minister Mohammed Amin Adam, the country’s economy has recovered strongly and faster than anticipated, with a growth rate of 6.3 percent in 2024, up from 3.4 percent in 2016.
The Finance Minister attributed the growth to steady improvements in Gross Domestic Product (GDP), with growth rates of 4.8 percent, 7 percent, and 7.2 percent in the first, second, and third quarters of 2024, respectively.
He also highlighted Ghana’s external strength, with a trade balance surplus of US$3.85 billion and a current account surplus of 2.6 percent of GDP for the first nine months of 2024.
In addition, Dr. Amin Adam noted that Ghana’s Gross International Reserves currently stand 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.
He also acknowledged progress in reducing inflation, with headline inflation decreasing to 23 percent in November 2024 from a high of 54 percent in December 2022.
The Finance Minister’s assertions come at a critical moment, as the New Patriotic Party (NPP) prepares to hand over power to the National Democratic Congress (NDC) government led by President-elect John Dramani Mahama.
The NPP’s economic record has been a subject of debate, with some critics arguing that the government’s policies have not done enough to address poverty and inequality.
However, Dr. Amin Adam’s address suggests that the outgoing administration is confident about the state of the economy, and is urging the incoming government to build on the policies implemented by the NPP.
“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.
The NDC has promised to prioritize the digital economy and fintech to drive job opportunities, and has also vowed to resist tax waivers and loans that burden the public purse.
It remains to be seen how the incoming administration will build on the economic gains made by the NPP, and address the challenges still facing the country.
In the meantime, the debate over the true state of Ghana’s economy is likely to continue, with some experts weighing in on the road to economic recovery.
-BY Daniel Bampoe