NPP Government Handing Over a ‘Strong Economy’ to Incoming Mahama Administration – Finance Minister
Finance Minister, Dr. Mohammed Amin Adam, has expressed confidence in the state of Ghana’s economy as the New Patriotic Party (NPP) prepares to hand over power to the newly elected administration of John Dramani Mahama.
Speaking at a press conference in Accra on Tuesday, December 17, 2024, Dr. Amin Adam described the economy as resilient and recovering strongly despite recent global and domestic challenges.
“We are handing over a strong economy,” Dr. Amin Adam asserted. “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.”
The Minister pointed to Ghana’s Gross International Reserves, which currently stand at $8 billion—equivalent to 3.5 months of import cover—compared to $6.2 billion handed over by the previous NDC administration in 2016. He emphasized that economic growth has returned to pre-COVID levels, citing a 6.3% average growth rate for 2024, driven by growth rates of 4.8% in Q1, 7% in Q2, and 7.2% in Q3.
Dr. Amin Adam noted significant improvements in private sector credit growth, with nominal growth reaching 28.7% in October 2024, a sharp turnaround from the 7.5% contraction recorded during the same period in 2023. “In real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year,” he explained.
On Ghana’s external position, he highlighted a trade balance surplus of $3.85 billion and a current account surplus of 2.6% of GDP for the first nine months of 2024. “These are significant improvements from the deficits in 2016, including a trade balance deficit of $1.8 billion and a current account deficit of 6.6% of GDP,” he stated.
Addressing inflation, Dr. Amin Adam acknowledged the challenges but emphasized progress. Headline inflation, he said, had reduced to 23% in November 2024 from a peak of 54% in December 2022. “Inflation is still high, but the measures we implemented have significantly stabilized prices and eased the hardship Ghanaians faced,” he assured.
The Finance Minister also touched on Ghana’s public debt levels, revealing a reduction of GH₵46.8 billion, bringing the debt stock from GH₵807.79 billion in September 2024 to GH₵761.01 billion in October 2024. This, he said, lowered the debt-to-GDP ratio from 79.2% to 74.6%. “We are on track to reduce it further to 55% in net present value terms, ensuring long-term debt sustainability,” Dr. Amin Adam noted.
He dismissed claims that the country is financially distressed, describing such assertions as “propaganda.” He stressed that Ghana’s economic fundamentals are stronger than when the NPP assumed office 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,” he concluded.
As the NPP prepares to hand over to the incoming Mahama administration, Dr. Amin Adam’s remarks reflect the outgoing government’s confidence in the trajectory of Ghana’s economy despite lingering challenges.
