Finance Minister: Ghana Is Not Broke … NPP handing over a strong economy

The current economy of Ghana is a resilient one that has chalked meaningful gains and prepared to anticipate and withstand future challenges; Dr. Mohammed Amin Adam, the outgoing Minister for Finance,  told journalists in Accra on Tuesday December 17.

Dr, Amin Adam suggested that President-elect John Mahama and the National Democratic Congress (NDC) are fortunate to take over Government at a time the economy has bounced back in a formidable way with its prospects brighter than ever.

“The economy has recovered strongly and faster than many anticipated”  and “we are handing over a strong economy, ”  Dr, Amin Adam told journalists.

He dismissed suggestions that the economy is broke and described such comments as sheer  “propaganda” for political mischief.

“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”, Dr. Amin Adam said and explained why in his view, the New Patriotic Party (NPP) government under President Nana Akufo-Addo is handing over a better economy that it inherited in 2017.

“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 7%, and strong external balances. Even though we faced challenges between 2021 and 2022, the economy has recovered strongly and faster than many anticipated”, Dr. Anim Adam noted.

The Finance Minister  explained the facts and figures behind is statement: “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.

“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.”

Speaking about gains within the private sector, Dr. Anim Adam said “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 said “in real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year.”

Dr. Anim Adam explained further that the private sector credit growth also showcased the recovery, with nominal growth reaching 28.7% in October 2024, a sharp turnaround from the contraction of 7.5% recorded in the same period in 2023.

He said on the external front, there has been a  trade balance surplus of $3.85 billion and there is a current account surplus of 2.6% 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 $1.8 billion and a current account deficit of 6.6% of GDP,” Dr. Anim Adams  stated.

He admitted there were still challenges with inflation but said there is no cause for alarm because measures have been put in place to rectify the situation:   “inflation is still high, but the measures we implemented have significantly stabilized prices and eased the hardship Ghanaians faced.”

Dr. Anim Adam said inflation, which hit a high of 54% in late 2022, has been brought down to 23% as of November 2024, showing that efforts to stabilize prices are paying off.