The Minister for Finance, Dr. Mohammed Amin Adam, has announced a remarkable rebound in the country’s economy, citing key indicators of growth and stability achieved through the effective implementation of the IMF-supported Post-COVID Program for Economic Growth (PC-PEG).
Addressing the media on the November 2024 Economic update, the Minister outlined the significant strides made in the economy under the IMF-supported Post-COVID Program for Economic Growth.
“The Ghanaian economy has rebounded and indeed has done so very strongly. Today, we are seeing the benefits of effective implementation of our recovery program, with significant progress in restoring macroeconomic stability and accelerating economic growth,” Dr. Adam stated.
The Finance Minister added that robust economic performance, with real GDP growth reaching 6.9% in the second quarter of 2024, up from 4.7% in the first quarter and 3.8% in the last quarter of 2023.
The first half of 2024 averaged 5.8% growth – the highest in the past five years – driven largely by the industrial, agricultural and ICT sectors.
“Ghana’s growth trajectory signals a return to pre-pandemic levels. ICT, in particular, has emerged as a major driver of economic expansion, showing the power of digitalization in transforming economies,” Dr. Adam said
Preliminary data from the Bank of Ghana reinforced this trend, with the Composite Index of Economic Activity (CIEA) recording a 2.8% growth in Q3 2024, compared to a 2.4% contraction in the same period of 2023.
Dr. Adam noted that Ghana has also made significant strides in curbing inflation, which has dropped from a high of 54.1% in December 2022 to 22.1% in October 2024.
According to him the exchange rate has remained stable, stating that the stability of the cedi is crucial for investor confidence and economic recovery.
The country improved its primary balance from a deficit of 4.3% of GDP in 2022 to a modest 0.3% deficit in 2023, with projections indicating a surplus of 0.5% by the end of 2024.
In addition, he said that the country has achieved significant reductions in its debt stock. The successful completion of a Eurobond restructuring program in October 2024 resulted in a GH₵46.8 billion reduction in the public debt stock, bringing the debt-to-GDP ratio down from 79.2% in September 2024 to 74.6% a month later.
The Finance Minister highlighted the recent approval of the third review of the IMF-supported PC-PEG program, describing it as a “vote of confidence” in Ghana’s economic management.
“For the first time, Ghana met all six quantitative performance criteria and four indicative targets under the program.
“This approval underscores the international community’s recognition of our commitment to reforms and our ability to deliver on agreed objectives,” he disclosed.
The IMF’s endorsement paves the way for the release of a fourth tranche of $360 million in funding and bringing total disbursements under the program to $1.92 billion.
Beyond economic stabilisation, the minister further added that the government has focused on protecting the vulnerable through expanded social intervention programs.
The Livelihood Empowerment Against Poverty (LEAP) program has seen its budget increase from GH₵50 million in 2016 to GH₵720 million in 2024, with benefits indexed to inflation.
“We’ve taken significant steps to support the most vulnerable in our society. This includes strengthening key programs such as School Feeding and the National Health Insurance Scheme (NHIS), which now covers treatments for Childhood Cancers, Mental Health Care and Dialysis Services,” Dr. Adam said.
Dr. Adam also highlighted major infrastructure investments, including the construction of over 150 public hospitals and multiple educational facilities across the country.
“Even in an election year, we have maintained fiscal discipline while investing in critical infrastructure to support growth and improve livelihoods,” he said.
“Many doubted that this economy would recover, but I want to assure all Ghanaians that this rebound is not by accident. It is the result of sound policies and collective effort,” he emphasised.
Dr. Adam urged Ghanaians to remain committed to the country’s recovery agenda.
“We are on a positive trajectory and we must not turn back. Let’s build on this progress together to create an economy that works for all,” he concluded.
