Finance Minister Mohammed Amin Adam has outlined key economic gains made under the New Patriotic Party (NPP) government as it prepares to hand over to the administration of President-elect John Dramani Mahama.
Speaking at a press briefing in Accra on Tuesday, December 17, 2024, Dr. Amin Adam stated that Ghana’s economy has 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, “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 percent in the first quarter, 7 percent in the second, and 7.2 percent in the third—reflect an average of 6.3 percent. This is significantly higher than the 3.4 percent average growth rate we inherited in 2016.”
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 percent 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 percent of GDP,” he noted.
On the country’s reserves, Dr. Amin Adam revealed 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.
Turning to inflation, he acknowledged the lingering pressures but assured the public of progress. “Headline inflation had reduced to 23 percent in November 2024 from a high of 54 percent in December 2022,” he said.
The Finance Minister also noted significant gains in private sector credit, describing it as a strong signal of economic confidence. “Nominal growth reached 28.7 percent in October 2024, a sharp turnaround from the contraction of 7.5 percent recorded in the same period in 2023. In real terms, private sector credit grew by 5.5 percent in October this year, compared to a contraction of 31.6 percent last year,” he explained.
Addressing concerns about Ghana’s debt, Dr. Amin Adam stated that the government had made strides in reducing the public debt stock. “The total public debt decreased by GHC46.8 billion from GHC807.79 billion in September 2024 to GHC761.01 billion in October 2024. This reduction brought the debt-to-GDP ratio down from 79.2 percent to 74.6 percent, and we are on track to reduce it further to 55 percent in net present value terms,” he explained.
While dismissing claims that Ghana’s economy is in distress as “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 John Dramani Mahama.
The Finance Minister’s assurances of recovery and stability will likely spark further debate over the true state of the economy amidst Ghana’s ongoing political transition.
