-Amid Multiple Crises
The Minister for Finance, Dr. Mohammed Amin Adam, has touted the government’s handling of the economy, noting the resilience amid several challenges, including the COVID-19 pandemic, unsustainable debt levels, and debt restructuring efforts over the past three to four years.
Speaking at a press briefing following the IMF/World Bank Annual Meetings, Dr. Amin Adam highlighted key achievements, crediting the government’s policies for stabilizing the economy.
Dr. Amin Adam noted a significant reduction in inflation as one of the government’s major accomplishments. While inflation surged during the pandemic and subsequent economic challenges, he credited fiscal and monetary interventions for stabilizing prices and bringing inflation closer to manageable levels.
The Finance Minister emphasized Ghana’s near return to pre-pandemic GDP growth rates. Despite the global slowdown, the country’s economy has shown signs of resilience, recovering from a period of negative growth to approach more sustainable rates, driven by investments in key sectors and policy reforms.
“We were in crisis, a high-volume crisis, and don’t forget that before COVID, we were growing at 7 percent on average. Now we are hit by COVID and now we are talking about high inflation, but now we have more than halved inflation amid the crisis. We see a depreciation by the end of 2022 at another 54 percent. But now we are talking about 25, 26 percent depreciation year-to-date. Growth went down to 0.5 percent by the end of 2020, but the growth rate was around 7 percent before Covid. Now as of half-year in 2024, we have already done 5.8 percent”. He touted.
The government’s interventions have contributed to a more stable cedi, minimizing sharp depreciation against major currencies. This currency stability has been essential for investor confidence and has helped control import costs, benefiting businesses and consumers alike.
Amid fiscal challenges, the government has continued to fund social interventions, including health, education, and welfare programs, to support Ghanaians during turbulent times. Dr. Amin Adam pointed to these initiatives as key in alleviating the economic pressures on citizens while fostering inclusive growth.
Dr. Amin Adam praised the government’s balanced approach to fiscal responsibility, economic growth, and social investment, crediting these strategies for maintaining macroeconomic stability.
He emphasized that his government is confident in the current economic trajectory which bolstered the IMF’s revision to 4%, based on investments in agriculture, rural infrastructure, tourism, and ICT, many of which are set to mature by year-end, as well as emphasizing the significant investments made in SMEs.
Dr. Mohammed Amin Adam’s assessment highlights the government’s achievements in steering Ghana’s economy through multiple crises, including a return to GDP growth, inflation control, currency stabilization, and sustained social investments.
