Finance Minister, Dr Mohammed Amin Adam, has expressed confidence in the strength of the economy as the New Patriotic Party (NPP) government prepares to hand over power to the incoming administration of President-elect John Dramani Mahama.

Addressing journalists in Accra on Tuesday, 17 December 2024, Dr Amin Adam asserted that the current state of Ghana’s economy reflects significant recovery and resilience despite global and domestic challenges in recent years.

“We are handing over a strong economy. The first four years of this administration were marked by impressive performance, with the longest period of single-digit inflation, an average GDP growth rate of seven per cent, and strong external balances.

Even though we faced challenges between 2021 and 2022, the economy has recovered strongly and faster than many anticipated,” he stated.

Dr Amin Adam highlighted key achievements, including Ghana’s Gross International Reserves, which currently stand at eight billion US dollars, equivalent to three-and-a-half months of import cover.

He compared this to the six-point-two billion US dollars of reserves handed over to the NPP in 2016 under the National Democratic Congress (NDC).

The Finance Minister also pointed to Ghana’s economic growth as evidence of the recovery: “The growth rates in 2024—four-point-eight per cent in the first quarter, seven per cent in the second, and seven-point-two per cent in the third—reflect an average of six-point-three per cent. This is significantly higher than the three-point-four per cent average growth rate we inherited in 2016.”

Dr Amin Adam noted private sector credit growth as another key indicator of recovery.

“Nominal private sector credit grew by twenty-eight-point-seven per cent in October 2024, a sharp turnaround from the contraction of seven-point-five per cent recorded in the same period in 2023. In real terms, private sector credit grew by five-point-five per cent in October this year, compared to a contraction of thirty-one-point-six per cent last year,” he explained.

On external trade, the Finance Minister revealed a trade balance surplus of three-point-eight-five billion US dollars and a current account surplus of two-point-six 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 one-point-eight billion US dollars and a current account deficit of six-point-six per cent of GDP,” he stated.

Turning to inflation, Dr Amin Adam acknowledged persistent challenges but highlighted marked improvements.

“Headline inflation reduced to twenty-three per cent in November 2024 from a high of fifty-four 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.

He further reported notable progress in managing Ghana’s debt levels.

“The total public debt decreased by GHS46.8 billion from GHS807.79 billion in September 2024 to GHS761.01 billion in October 2024. This reduction brought the debt-to-GDP ratio down from seventy-nine-point-two per cent to seventy-four-point-six per cent, and we are on track to reduce it further to fifty-five per cent in net present value terms, ensuring long-term debt sustainability,” he assured.

Dr Amin Adam dismissed claims that Ghana is financially distressed, describing such assertions as “propaganda”.

He added: “Ghana’s economic fundamentals are stronger than when the NPP took over in 2016. 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.”