The Finance Minister of Ghana, Dr. Mohammed Amin Adam, has announced a significant turnaround in the country’s economy during the Mid-Year Budget Review presentation to Parliament. He reported that Ghana’s economy is rebounding more than expected, attributing this positive change to the stabilization of the exchange rate, a decline in inflation, and an increase in gross international reserves.
Dr. Amin Adam emphasized that the government’s strategic measures and policies are yielding positive results. He highlighted that these efforts are effectively addressing the economic challenges that the country has faced. According to the Finance Minister, the government has successfully reversed the negative trends that previously plagued the economy, with key economic indicators showing substantial improvements.
The Finance Minister stated, “Growth continues to exceed our expectations.” He referenced data from the Ghana Statistical Service, which reported a 4.7 percent growth rate for the first quarter of 2024. This growth surpasses the revised target of 3.1 percent, indicating a stronger-than-anticipated economic performance.
Inflation has been on a downward trend, with the end-June inflation rate standing at 22.8 percent. This marks a reduction of 31 percentage points since December 2022. Dr. Amin Adam expressed confidence that the inflation rate could meet the target threshold of +/-2 of 15 percent by the end of 2024.
Another positive development is the stabilization of the exchange rate. Compared to December 2022, the depreciation rate against the US Dollar has improved. As of June 2024, the depreciation rate was 18.6 percent, a notable improvement from the 22.0 percent recorded for the same period the previous year.
Dr. Amin Adam also reported an increase in Ghana’s gross international reserves, which reached 3.1 months of import coverage as of the end of June 2024. This is an improvement from the 2.5 months of import coverage recorded at the same time the previous year.
In his presentation, the Finance Minister assured Parliament that the government remains committed to its current economic strategy. He emphasized that the administration will continue to make prudent decisions to sustain the country’s economic growth. “I want to assure you that we will stay on this path and continue to make the right choices. Our economic recovery is fast and strong,” he said.
Dr. Amin Adam highlighted the urgency and speed with which the government has implemented key programs over the past six months. He pointed out that the administration has swiftly provided the necessary support for growth-enhancing initiatives, which have contributed to the positive economic trends.
The Finance Minister’s report highlights the government’s dedication to maintaining these positive trends and ensuring the continued revival and growth of the Ghanaian economy. He expressed confidence that the country’s economic recovery will benefit all citizens, fostering a more stable and prosperous future.
Dr. Amin Adam’s presentation of the Mid-Year Budget Review reflects a promising outlook for Ghana’s economy. The strategic measures and policies implemented by the government have started to bear fruit, reversing negative trends and setting the stage for sustained growth.
