The claims of the Minister for Finance, Dr. Mohammed Amin Adam that his government is handing over a strong economy have received a number of spirited reactions that do not support his assertions.
Despite the economic turbulence Ghanaians have suffered, Dr Mohammed Amin Adam claims the incoming administration will inherit a strong and resilient economy that can drive their socio-economic agenda.
The Minister believes despite the challenges emanating from both the global and domestic environment, the Akufo Addo-led government has been able to stem the tide and is handing over a stronger economy than they inherited come January 7.
The Justification
In a statement released by the Ministry last week, the Minister emphasized some economic gains, which he believes support his assertion that Ghana’s economy is in a better state. Gross International Reserves, the Minister says, are now at US$8 billion, which is equivalent to 3.5 months of import cover. He further cited the quarterly growth rate for 2024 as evidence of a strong economy.
“Growth rates of 4.8% in the first quarter, 7% in the second, and 7.2% in the third give us an average growth rate of 6.3%. This is far above the 3.4% average growth rate we inherited in 2016,” he said.
He further justified that the decline in inflation from 54% in December 2024 to 23% in November 2024 is a significant progress. Other indicators he used are the trade surplus of $3.85 and a decrease in public debt stock by GH¢46.8 billion from GH¢807.79 billion in September 2024 to GH¢761.01 billion in October 2024 bringing the debt-to-GDP ratio down to 74.6% from 79.2%.
Status of Major Economic Indicators as of 2016
Based on the claims of the Minister for Finance, it is very important to go back in time and check the status of major economic indicators when the NPP inherited the reins of government in 2017.
According to the Ministry of Finance, total public debt stock as of December 2016 stood at GH¢122 billion representing 56.85% of GDP. Inflation stood at approximately 15% while the cedi was depreciating at a rate of 9%. The cedi as of December 2026 was selling at GH¢4.1 to the dollar. The budget deficit was estimated at 6.1% while the IMF projected the economy to grow by over 8% in 2017.
Judgement of Experts
Some watchers and analysts of Ghana’s economic development upon comparison of the state of Ghana’s economy in 2016 and current happenings have vehemently opposed the finance minister’s claim of a stronger economy.
Financial Analysts, Dr Richmond Atuahene is surprised about the claims made by the Minister for Finance. He tells The High Street Journal that Ghana’s economy has experienced one of the worst setbacks under the current administration.
Dr Atuahene argued that the current state of major economic indicators compared to 2016 cannot support the Finance Minister’s assertion of a stronger economy.
“In economy, we say that there is a real growth, not a nominal growth as he said, because you are handing over inflation of 23%. If you took it to 54 and brought it to down to 23, you haven’t done anything. Have you been able to bring it down to even 15% you took over? You haven’t. You just talk about reserves. The reserves we have, it’s not that we sold gold, or we sold diamond or gold, or remittances. All that has come in over the last year since the IMF programme is that the reserves are not being utilised. That is why the cedi is running” he argued
He added, “you’re handing over a currency, which you took over 4.1 to a dollar, and you’re talking close to 16 even from Bank of Ghana position of manipulation, or whatever you call it. You took over a debt of 29 billion, you are handing over what we call a debt overhang of 58 billion. Debt overhang of 58 billion.”
In his candid view, Ghana’s economy does not pass the test of a strong economy and hence the Minister of Finance must “revise his note” and rethink his judgement.
“I think that is rather weak. I can even say there is no economy. You don’t even pass the test. Your currency is on the run. You have a debt overflows. You have inflation running ahead of you. So, which of the variables are you talking about that you are handing over a strong economy? I want him to come clean,” he maintained.
Implications
Irrespective of the divergent views of analysts, one thing is very clear – the next government has a lot of work to do in stabilizing the fundamentals of the economy. However, the reality is that the attempt to stabilize the economy will also compete with the demands and expectations of many Ghanaians.
President-elect, John Dramani Mahama has admitted the challenge ahead and has also indicated his resolve to renegotiate the current IMF Extended Credit Facility. Will Ghanaians grant him patience and offer the new administration a honeymoon period to stabilize things before expecting some respite in their socio-economic needs? Posterity is the best judge.
