Ghana’s Economic Recovery efforts show strong results, says Finance Minister amid IMF forecast upgrade

Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has outlined the economic recovery successes achieved by the current New Patriotic Party (NPP) government, highlighting resilience in the face of recent economic challenges such as the COVID-19 pandemic, high inflation, and debt restructuring.

Speaking at a recent press briefing marking the close of the IMF/World Bank Annual Meetings, Dr. Adam emphasized that, despite

Read full article.these hurdles, the country has made significant strides in achieving economic stability and growth.

Citing the reduction in inflation rates and improvement in GDP growth, Dr. Adam underscored the role of strategic policies and government investments across sectors, which he says have bolstered Ghana’s economic position. “Before the pandemic, we were experiencing an average growth rate of 7%, but COVID-19 disrupted our trajectory,” he remarked.

“Despite the crises, we’ve managed to halve inflation and are seeing stable currency depreciation rates, currently at about 25% year-to-date, down from 54% in 2022.” Ghana’s GDP growth rate, which had dropped to 0.5% by the end of 2020, now stands at 5.8% for the first half of 2024, surpassing pre-pandemic levels.

Dr. Adam highlighted the government’s significant investments in social programs, noting that these interventions were designed to alleviate economic pressures and provide long-term value.

Programs such as the Free Senior High School initiative have enabled over 5.7 million students to access education, while national health insurance spending has reached GHS 6.5 billion this year, a sharp increase from GHS 1 billion in 2016. According to Dr. Adam, these initiatives represent the government's commitment to social welfare and economic resilience.

Reflecting optimism for Ghana’s future growth trajectory, the Finance Minister shared news of the IMF’s recent revision of Ghana’s 2024 GDP growth forecast from 3.1% to 4%. He attributed this upward revision to government investments in key growth areas, including agriculture, infrastructure, tourism, ICT, and SME support.

“We are not surprised by this IMF forecast increase,” Dr. Adam said. “Our continued investments in sectors like agriculture, ICT, and rural infrastructure will keep our growth momentum strong through the end of the year.”

Dr. Adam further emphasized that Ghana’s economic recovery is underpinned by sound fiscal responsibility and growth-oriented reforms, creating a foundation for future governments to build upon.

He concluded, “With this solid foundation, Ghana is on a sustainable path to economic stability, and we remain committed to fiscal discipline and effective resource management.”