According to Dr. Mohammed Amin Adam, the minister of finance, the economy is recovering more quickly than expected.
He ascribed the economic expansion to the increase in gross international reserves, the reduction in inflation, and the stabilisation of the currency rate.
He claims that the government’s decisions and programs are having the desired effect.
Dr. Amin Adam said that the government has reversed the unfavourable trends during his presentation of the Mid-Year Budget Review on Tuesday, July 23. He also added that the economic indicators are improving.
“Growth is still exceeding our projections. The Ghana Statistical Service announced a growth rate of 4.7 percent for the first quarter of 2024, which is higher than the reduced objective of 3.1 percent. Inflation is also falling. The objective barrier of +/-2 of 15 percent by the end of 2024 is confirmed to be achievable by the end-of-June inflation rate of 22.8 percent, a decrease of 31 percentage points since December 2022;
“Despite the recent pressures, the exchange rate has largely stabilised, compared to December 2022,” he emphasised. As of June 2024, the depreciation rate versus the US dollar was 18.6%, which is an improvement over the 22.0 percent recorded for the same time the previous year. Additionally, as of the end of June 2024, Gross International Reserves were 3.1 months of imports, compared to 2.5 months for the same period the previous year.
It’s clear, Mr. Speaker, that we are headed in the right direction. The economy is recovering more quickly than predicted. We are seeing benefits from the decisions we have made and the strategies we are putting into place. The unfavourable trends have been reversed, and every indication is showing improvement.
The minister of finance gave assurances that the government will stick to its current course and keep making wise choices to maintain the growth of the economy of the nation.
“I want to reassure you that we will stick to our course and keep making the correct decisions. Our economy is quickly and robustly recovering.
“Mr. Speaker, during the past six months, we have worked to expedite and accelerate the implementation of important government programs and to promptly furnish the requisite backing for growth-promoting initiatives.”